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Table of Contents
Hong Kong ETF debut is impressive, and the market response is enthusiastic
Unique innovation in Hong Kong model
Traditional Finance (TradFi) accelerates embracing crypto assets
From waiting to entering: a change in institutional attitude
Future Outlook: The Road to Integration has just begun
Home web3.0 Hong Kong Bitcoin ETF performed well in the first week of listing, traditional finance accelerated embracing crypto assets

Hong Kong Bitcoin ETF performed well in the first week of listing, traditional finance accelerated embracing crypto assets

Aug 01, 2025 pm 06:18 PM
Blockchain Bitcoin cryptocurrency Ethereum Blockchain technology Binance exchange Huobi Ouyi Bitcoin exchange Asset Tokenization Tokenization 2025 2

The first batch of six virtual asset spot ETFs in Hong Kong were officially listed and traded on April 30, marking a key step forward in Hong Kong's path to becoming a global virtual asset center. In the first week of listing, these ETF products performed strongly, attracting a large amount of market attention and capital inflows, once again confirming that crypto assets are accelerating their recognition from the mainstream financial system.

Mainstream Bitcoin Exchanges in 2025:

Ou Yi :

Binance:

Huobi:

Hong Kong ETF debut is impressive, and the market response is enthusiastic

The ETF products listed this time include three Bitcoin spot ETFs and three Ethereum spot ETFs, which are jointly issued by Huaxia Fund (Hong Kong), Jiashishi International, Bose International and HashKey Capital respectively. On the first day of listing, the total transaction volume of the six ETFs reached approximately HK$87.58 million (approximately US$11.2 million), and the total asset management scale (AUM) exceeded HK$2 billion. Although this achievement is not as large as the US market in absolute terms, considering the size of the Hong Kong market, this is undoubtedly a very successful beginning .

Hong Kong Bitcoin ETF performed well in the first week of listing, and traditional finance accelerated its embrace of crypto assets - php Chinese

Unique innovation in Hong Kong model

Unlike the US market that only approved Bitcoin spot ETFs before, Hong Kong has simultaneously launched spot ETFs, two mainstream cryptocurrencies, Bitcoin and Ethereum, which is at the forefront of the global market. More importantly, Hong Kong's ETFs have introduced a physical redemption (in-kind) mechanism.

What is physical redemption?

The physical redemption mechanism allows investors to directly use their Bitcoin or Ethereum to subscribe to ETF shares, and can also redeem ETF shares as real cryptocurrencies. This innovative design opens up a direct exchange channel between crypto assets and traditional financial products, provides great convenience for cryptocurrency holders, avoids price slippage and transaction costs in the cash conversion process, and is considered a major improvement over the US cash redemption model.

Traditional Finance (TradFi) accelerates embracing crypto assets

The success of Hong Kong ETF is not an isolated event, but a microcosm of the grand trend of global traditional financial giants accelerating their layout of crypto assets. From Wall Street to Asia's financial centers, an irreversible wave is taking shape.

From waiting to entering: a change in institutional attitude

Once upon a time, many giants on Wall Street were skeptical and even rejected cryptocurrencies. However, with the growing demand for customers, the crypto market becoming more mature, and the regulatory framework gradually became clear, the attitudes of these institutions have undergone a 180-degree change.

Taking the US market as an example, Bitcoin spot ETFs issued by top asset management companies such as BlackRock and Fidelity have attracted tens of billions of dollars inflows in just a few months, creating a milestone in the history of ETF issuance . This huge success proves to the global market the strong appeal of regulated crypto investment products.

Drivers:

  • Client Requirements: Both high net worth individual and institutional clients show a strong interest in incorporating crypto assets into their portfolios to diversify.

  • Pursuing returns: In the context of challenges facing traditional asset returns, the high volatility and potentially high returns of crypto assets have become an attractive option.

  • Technology recognition: More and more financial institutions are beginning to recognize the value of blockchain technology itself and explore its applications in areas such as asset tokenization.

Future Outlook: The Road to Integration has just begun

The successful listing of Hong Kong virtual asset ETFs has opened a compliant and convenient crypto investment door for Asian investors. This will not only consolidate Hong Kong's position as an international financial center, but will also further promote the development of the crypto asset market in the Asia-Pacific region.

Looking ahead, the integration of traditional finance and the crypto world will be more in-depth. We can foresee that more types of crypto derivatives and structured products will emerge, and blockchain technology itself will be more widely used in traditional financial fields such as clearing, settlement and asset management. Although there are still challenges such as regulatory uncertainty ahead, the general direction has been clear: a new era connecting traditional finance and digital assets has arrived.

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