The Hong Kong financial market marked a historic milestone on April 23, 2025, as three major asset management firms—China Asset Management (Harvest), CSOP Asset Management, and Bosera Asset Management—received approval to launch spot Bitcoin and Ethereum ETFs. This groundbreaking development ushers in a new era for digital asset investment in Asia, offering investors a regulated, accessible, and secure way to gain exposure to leading cryptocurrencies.
👉 Discover how spot crypto ETFs are reshaping investment in Asia.
What Is a Spot Crypto ETF?
A spot cryptocurrency ETF is an exchange-traded fund that directly holds physical crypto assets—like Bitcoin (BTC) and Ethereum (ETH)—to mirror their real-time market prices. Unlike futures-based ETFs, which track derivatives contracts, spot ETFs provide a more accurate reflection of actual crypto value. Think of it like a gold spot ETF, where the fund owns real gold bars stored securely, and its share price moves in tandem with gold prices.
These Hong Kong-listed ETFs allow investors to trade crypto-linked securities on traditional stock exchanges. This eliminates the need to manage private keys, navigate crypto wallets, or worry about exchange security—common barriers for retail investors.
According to a joint notice from the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued in December 2023, these products are not available to retail investors in mainland China or other jurisdictions where virtual asset products are restricted. However, mainland residents holding a Hong Kong ID card may participate, provided they comply with local regulations and open accounts through approved platforms.
Key Features of Hong Kong’s Spot Crypto ETFs
Below is a detailed comparison of the three major players—Harvest, CSOP, and Bosera—across critical dimensions including pricing, trading structure, fees, and custodial arrangements.
Launch Date and Initial Pricing
All three ETFs officially launched on April 30, 2025, creating a synchronized market debut. However, their initial pricing models differ slightly:
- Harvest Fund and CSOP Fund: Both set an initial offering price of $1.00 per share.
- Bosera Fund: Uses a dynamic pricing model based on the CME CF Bitcoin Reference Rate (BRR) at 4:00 PM Hong Kong time on April 26, 2025, with each share priced at 0.0001 BTC.
This innovative pricing method by Bosera allows for direct alignment with Bitcoin’s market value at launch.
Share Trading and Subscription Requirements
| Feature | Harvest Fund | CSOP Fund | Bosera Fund |
|---|---|---|---|
| Minimum trading lot | 100 shares | 100 shares | 10 shares |
| Minimum subscription | 10,000 shares | 50,000 shares | 10,000 shares |
Bosera stands out with a lower entry threshold for trading (just 10 shares), making it more accessible to small investors. However, CSOP requires the highest minimum subscription volume, potentially targeting institutional clients.
Creation and Redemption Mechanism
All three funds support in-kind and cash creation/redemption, meaning authorized participants can exchange actual BTC/ETH or cash for ETF shares. This dual mechanism enhances liquidity and helps keep the ETF’s market price closely aligned with its net asset value (NAV).
Supported Trading Currencies and Management Fees
Trading currencies:
- Harvest: USD, HKD, CNY
- CSOP: USD, HKD
- Bosera: USD, HKD
Harvest offers the most flexibility with triple-currency support, including renminbi (CNY), catering to cross-border investors.
Management fees:
- Harvest: Flat rate of 0.99%
- CSOP: 0% for first 6 months, then 0.3%
- Bosera: 0% for first 4 months, then 0.6%
CSOP’s ultra-low long-term fee makes it highly competitive, while Bosera balances short-term incentives with moderate ongoing costs.
Benchmark Index and Custody Structure
All three ETFs track the CME CF Bitcoin Reference Rate (BRR)—a regulated index that calculates Bitcoin’s price based on a weighted average across major spot exchanges. This ensures transparency and reduces manipulation risk.
- Primary custodian: All funds use BOC International Prudential Trust to safeguard assets and oversee compliance.
Sub-custodians:
- Harvest & CSOP: OSL Digital Securities Limited
- Bosera: Hash Blockchain Limited
👉 See how secure crypto custody is transforming institutional investing.
The choice of sub-custodian reflects differing risk management strategies. OSL is a licensed virtual asset exchange in Hong Kong, while Hash Blockchain specializes in blockchain infrastructure and custody solutions.
Trading Platforms, Market Makers & Authorized Participants
Trading platforms:
- Harvest & CSOP: OSL Exchange
- Bosera: HashKey Exchange
Both OSL and HashKey are SFC-licensed virtual asset trading platforms, ensuring regulatory compliance.
Market makers:
- Harvest: Vivienne Court Trading
- CSOP: CMBI Securities, CLSA, Virtu Financial Singapore
- Bosera: Not yet disclosed
CSOP’s selection of top-tier global market makers suggests strong liquidity support from day one.
Authorized Participants (APs):
- Harvest & CSOP: Include Victory Securities, Mirae Asset Securities (HK), Edison Brokers (Asia), APAC Securities, and Webull Capital.
- CSOP also includes CMBI Securities.
APs play a crucial role in maintaining ETF liquidity by creating and redeeming shares in large blocks. A diverse AP network enhances market efficiency and stability.
Audit Firms: Ensuring Financial Integrity
Independent audits are essential for investor trust:
- Harvest & CSOP: Audited by PwC (PricewaterhouseCoopers)
- Bosera: Audited by Ernst & Young (EY)
These globally recognized firms verify financial statements, ensuring accuracy and regulatory compliance.
AUM and ETF Ecosystem Comparison
Understanding each issuer’s scale helps assess their operational strength:
Harvest Fund:
- Mainland AUM: $55.7 billion
- Hong Kong AUM: $3.6 billion
- ETFs issued (Mainland): 84
- ETFs issued (HK): 15
CSOP Fund:
- Mainland AUM: $10.3 billion
- Hong Kong AUM: $16 million
- ETFs issued (Mainland): 42
- ETFs issued (HK): 4
Bosera Fund:
- Mainland AUM: $10.7 billion
- Hong Kong AUM: $40 million
- ETFs issued (Mainland): 43
- ETFs issued (HK): 6
Harvest leads in scale and experience, especially in Hong Kong’s ETF market. CSOP and Bosera are smaller but demonstrate focused innovation in digital assets.
Why These ETFs Matter for Investors
Hong Kong’s spot crypto ETFs represent a major leap in financial innovation. They offer:
- Regulated access to Bitcoin and Ethereum
- Simplified trading via familiar stock platforms
- Enhanced security through professional custody
- Lower entry barriers compared to direct crypto ownership
For global investors eyeing Asia’s crypto future, these products are a strategic gateway.
👉 Learn how regulated crypto ETFs are driving mainstream adoption.
Frequently Asked Questions (FAQ)
Q1: Can mainland Chinese investors buy these Hong Kong crypto ETFs?
A: No, retail investors from mainland China cannot access these products due to regulatory restrictions. However, mainland residents with a Hong Kong ID may be eligible if they open accounts through approved brokers.
Q2: Do I need to own Bitcoin to invest in these ETFs?
A: No. You can invest using cash in USD or HKD. However, authorized participants may use BTC or ETH for in-kind subscriptions.
Q3: How do spot crypto ETFs differ from futures-based ones?
A: Spot ETFs hold actual Bitcoin or Ethereum, providing direct price exposure. Futures ETFs rely on derivative contracts, which can deviate from spot prices due to rollover costs and market sentiment.
Q4: Which ETF has the lowest long-term management fee?
A: CSOP offers the lowest ongoing fee at just 0.3% after a six-month waiver period.
Q5: Are these ETFs safe? How is my investment protected?
A: Yes. Assets are held by regulated custodians like BOC International Prudential Trust. Independent auditors (PwC/EY) ensure transparency. The SFC also enforces strict operational standards.
Q6: Can I redeem my ETF shares for actual Bitcoin?
A: Individual investors cannot directly redeem shares for BTC. Only authorized participants (large institutions) can perform in-kind redemptions to maintain market efficiency.
By combining regulatory rigor with financial innovation, Hong Kong’s “Big Three” crypto ETFs are setting a new benchmark for digital asset investment in Asia. Whether you prioritize low fees, liquidity, or brand reputation, there's now a regulated path to crypto exposure tailored to your needs.