The Hong Kong financial market marked a pivotal moment in its digital asset evolution on April 23, 2025, with the approval of spot Bitcoin and Ethereum ETFs from three leading asset management firms: CSOP Asset Management, Harvest Fund, and Bosera Asset Management. This milestone positions Hong Kong as the first Asian hub to offer physically backed cryptocurrency exchange-traded funds, opening regulated, accessible pathways for traditional investors to gain exposure to digital assets without managing private keys or crypto wallets.
These spot ETFs directly hold Bitcoin (BTC) and Ethereum (ETH), tracking their real-time market prices. Unlike futures-based products, they reflect the actual value of the underlying assets, providing a more transparent and secure investment vehicle. Investors can now trade these ETFs on conventional stock exchanges just like any equity — simplifying access, enhancing security, and integrating crypto into mainstream portfolios.
With all three funds now live, investors face a critical question: Which one aligns best with their financial goals? Below is a detailed breakdown of key differences in structure, cost, trading mechanics, and ecosystem support.
Key Features Comparison: CSOP vs. Harvest vs. Bosera
Launch Date and Initial Pricing
All three ETFs officially began trading on April 30, 2025, ensuring a level playing field in market entry. However, their initial pricing models differ:
- CSOP and Harvest set their starting share price at $1.00 USD, making them accessible to retail investors.
- Bosera, meanwhile, priced its ETF based on the CME CF Bitcoin Reference Rate at 4:00 PM HKT on April 26, using a multiplier of 0.0001. This approach ties the initial value more closely to real-time BTC market conditions.
👉 Discover how spot crypto ETFs are reshaping investment strategies in Asia.
Trading Units and Minimum Investment Thresholds
Understanding lot sizes and minimum purchase requirements is essential for both retail and institutional investors:
CSOP and Harvest:
- Lot size: 100 shares per board lot
- Minimum creation unit: 10,000 shares
Bosera:
- Lot size: Only 10 shares, significantly lowering the entry barrier
- Minimum creation unit: 10,000 shares
Notably, Harvest Fund requires a higher threshold for institutional creations — 50,000 shares — compared to CSOP and Bosera’s 10,000-share minimum. This may influence which fund large investors prefer during primary market transactions.
Creation and Redemption Mechanism
All three providers support in-kind and cash-based creation and redemption, a crucial feature for maintaining ETF price stability. Authorized participants (typically large financial institutions) can exchange baskets of crypto assets or cash for new ETF shares (creation), or redeem shares for underlying assets (redemption). This mechanism helps keep the ETF’s market price aligned with its net asset value (NAV), reducing premium/discount volatility.
Cost Structure and Currency Options
Management Fees: A Strategic Advantage
Management fees play a significant role in long-term returns. Each provider has adopted a competitive fee strategy:
- CSOP: Charges a flat 0.99% annual management fee — higher than peers but transparent with no time-limited waivers.
- Harvest: Offers a fee waiver for the first six months, followed by a reduced rate of 0.3% annually — currently the lowest ongoing fee among the three.
- Bosera: Provides a four-month fee holiday, then charges 0.6% per year.
For cost-conscious investors, Harvest’s long-term fee structure presents a compelling advantage, especially for buy-and-hold strategies.
Supported Trading Currencies
Diversifying currency options enhances accessibility across investor bases:
- CSOP: Supports USD, HKD, and CNH (offshore RMB) — ideal for cross-border investors seeking yuan-denominated exposure.
- Harvest and Bosera: Support USD and HKD only.
CSOP’s inclusion of CNH could appeal to mainland Chinese investors accessing Hong Kong markets through programs like Stock Connect.
Trading Infrastructure: Exchanges, Market Makers & Participating Dealers
Approved Crypto Custody Platforms
Each ETF relies on licensed virtual asset trading platforms to custody underlying assets:
- CSOP and Harvest: Use OSL Exchange, a Hong Kong-based, SFC-licensed digital asset platform known for institutional-grade security.
- Bosera: Partners with HashKey Exchange, another SFC-licensed exchange emphasizing compliance and transparency.
Both OSL and HashKey are pivotal in ensuring regulatory compliance and asset integrity, reinforcing investor confidence.
Participating Dealers: Ensuring Liquidity
Participating dealers (also known as authorized participants) are financial institutions that facilitate ETF share creation and redemption. They also work with market makers to ensure tight bid-ask spreads and consistent liquidity.
Key participating dealers include:
CSOP & Harvest:
- Victory Securities
- Mirae Asset Securities
- Huayin Oriental Holding
- AID Securities
- Futu Capital Securities
Harvest also includes:
- China Merchants Securities — adding broader institutional reach
These partnerships enhance market efficiency and ensure smooth secondary-market trading.
Why Hong Kong’s Crypto ETF Launch Matters
Hong Kong’s move to approve spot crypto ETFs signals a strategic push to become Asia’s premier digital asset hub. By combining traditional finance infrastructure with regulated crypto access, it bridges the gap between legacy investors and blockchain innovation.
For retail investors, these ETFs eliminate the technical complexities of self-custody while offering exposure to high-growth digital assets. For institutions, they provide a compliant, auditable way to allocate capital to crypto within existing frameworks.
Moreover, the competition among CSOP, Harvest, and Bosera drives innovation in pricing, accessibility, and service quality — ultimately benefiting end users.
👉 See how regulated crypto investment products are evolving in global markets.
Frequently Asked Questions (FAQ)
Q1: What is a spot cryptocurrency ETF?
A spot ETF holds the actual underlying asset — in this case, Bitcoin or Ethereum — rather than futures contracts or derivatives. Its value directly reflects real-time market prices of the crypto it tracks.
Q2: Do I need a crypto wallet to invest in these ETFs?
No. These ETFs are traded on traditional stock exchanges. You buy shares through your brokerage account just like any stock — no need to manage private keys or digital wallets.
Q3: Which ETF has the lowest cost over time?
Harvest Fund offers the lowest long-term expense ratio at 0.3% annually after a six-month fee waiver, making it the most cost-efficient option for extended holdings.
Q4: Can I trade these ETFs in U.S. dollars?
Yes. All three ETFs support USD trading. Additionally, CSOP allows trading in HKD and CNH, giving it broader currency flexibility.
Q5: How do creation and redemption work in crypto ETFs?
Authorized participants (large brokers or banks) can exchange a basket of underlying crypto (or cash) for new ETF shares. This process maintains price alignment with the actual asset value and supports market stability.
Q6: Are these ETFs safe from hacking risks?
While no system is entirely risk-free, these ETFs store assets on licensed platforms like OSL and HashKey, which follow strict custody protocols, insurance coverage, and regulatory oversight — significantly reducing security risks compared to personal wallets.
Final Thoughts: Choosing the Right Crypto ETF
Each of the three Hong Kong spot crypto ETFs brings unique advantages:
- Choose CSOP if you value multi-currency trading (including CNH) and consistent fee transparency.
- Opt for Harvest if low long-term fees and strong institutional backing matter most.
- Go with Bosera if you prefer smaller lot sizes (only 10 shares) and are comfortable with mid-tier fees after the introductory period.
As adoption grows, expect increased competition, tighter spreads, and potentially new entrants in Hong Kong’s expanding digital asset ecosystem.
👉 Stay ahead of the curve in regulated crypto investing — explore your options today.
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