- Bitcoin once again elected as US President, also bringing virtual currencies back into the public eye. The Hong Kong Exchange has been actively deploying related business, and here’s a brief record of its virtual currency development history.
Reviewing the details of relevant contract listings, we found that the initial introduction wasn’t spot contracts but futures – which was reasonable due to their better liquidity and easier attraction of institutional investors. Subsequently introducing spot ETFs was also sensible, as they are a more readily accepted investment tool.
Virtual Currency List
The Hong Kong Exchange’s market data does not provide identifiers to distinguish between contracts that are virtual currencies. However, they can be determined by the contract name. The official trading list provides corresponding subcategories virtualasset.
December 16, 2022
Hong Kong Exchange Welcomes First Batch of Crypto Asset ETFs in Asia
The Hong Kong Exchanges and Clearing Limited (HKEX) today (Friday) welcomed the listing of the first batch of crypto asset ETFs in Asia, further expanding its product ecosystem and providing more choices for investors in Hong Kong and internationally.
The two new ETFs listed today – Southern East One Bitcoin Futures ETF (stock code: 3066) and Southern East One Ethereum Futures ETF (stock code: 3068) – are managed by Southern East One Asset Management Co., Ltd. and track standardized, cash-settled bitcoin futures contracts and ether futures contracts traded on the Chicago Mercantile Exchange (CME).
“The two crypto asset ETFs listed today add another layer of richness to Hong Kong’s increasingly diverse exchange trading product ecosystem,” said Mr. Yao Jia Ren, Chief Operating Officer and Head of Market Development at HKEX. “These new products will provide investors in Asia for the first time with an opportunity to participate in digital asset investment, reflecting our focus on the digital economy and market demand. We look forward to bringing more thematic ETFs and digital asset products in the coming months.”
ETF is one of the fastest-growing businesses under HKEX, with its product range continuously expanding and becoming increasingly diversified, including the launch of Hong Kong’s first Metaverse ETF, first Carbon Futures ETF, and first Blockchain ETF within the year. It also marked the first time ETFs were included in the滬深港通 (HKSG Connect).
Furthermore, the average daily trading volume of HKEX’s buy-and-sell products (ETPs – including ETFs and leveraged and inverse products) for the first eleven months of this year reached HK$118 billion, a 50% increase from last year’s same period of HK$78 billion, reflecting the growing popularity of ETPs among investors. As of November 2022, there were 168 ETPs listed on HKEX with a market capitalization of HK$3,735 billion.
April 30, 2024
Hong Kong Exchange Welcomes First Batch of Spot Virtual Asset ETFs
The Hong Kong Exchanges and Clearing Limited (HKEX) today (Tuesday) welcomed the listing of Asia’s first batch of spot virtual asset ETFs, adding to the variety of products in the Hong Kong market and providing investors with more choices, further solidifying Hong Kong’s position as a leading ETF market in Asia.
“Today’s newly listed spot virtual asset ETFs will enrich the diversified and dynamic ETF market ecosystem of the Hong Kong Exchange, offering investors new investment opportunities in asset classes,” said Robert Lin, Head of Securities Product Development at HKEX. “Following the successful launch of the first virtual asset futures ETF a year ago, these first Asian spot virtual asset ETFs will further enhance the product variety and liquidity for the Hong Kong Exchange’s buy-and-sell products. We look forward to continuing to work closely with market stakeholders to introduce more new products into our internationalized market.”
The first batch of virtual asset futures ETFs, which were listed in 2022, have been favored by investors and traded actively. The average daily trading volume of the three spot virtual asset ETFs listed on HKEX increased from HK$890 million in 2023 to HK$5.13 billion in the first quarter of 2024, while attracting HK$5.29 billion in inflows.
Exchange-traded products (ETPs), including ETFs, leveraged and inverse products, are one of the fastest-growing markets for HKEX, with the product variety continuously increasing over the past year. The 16 new ETPs launched in 2023 and the first quarter of 2024 include the first Saudi Arabian ETF in the Asia Pacific region, Hong Kong’s first callable option ETFs, and currently there are 179 ETPs listed on HKEX.
October 28, 2024
Hong Kong Exchange to Launch Virtual Asset Index Series
The Hong Kong Exchanges and Clearing Limited (HKEX) announced today (Monday) that it will launch the Hong Kong Exchange Virtual Asset Indices Series (the “Series”) on November 15, 2024, providing a reliable benchmark price for the rapidly growing asset class of virtual assets, supporting Hong Kong’s development as a leading digital asset hub in Asia.
The index series will provide transparent and reliable benchmarks for pricing Bitcoin and Ethereum within the Asian time zone, aiming to offer a unified reference price for virtual assets, addressing price discrepancies between this asset class across global exchanges.
HKEX Group Chief Executive Officer Chen Yiting stated: “We are pleased to launch the Hong Kong Exchange Virtual Asset Indices Series to meet the demand for this rapidly growing asset class regionally. By providing transparent and reliable real-time benchmarks, we hope to help investors make informed investment decisions, supporting the healthy development of the virtual assets ecosystem and solidifying Hong Kong’s position as an international financial center.”
The launch of the index series is part of HKEX’s commitment to exploring emerging areas, supporting the development of Hong Kong fintech while also providing investors with important benchmarks and solutions in a constantly evolving market environment.
The index series will include reference indices for Bitcoin and Ethereum, as well as reference exchange rates.
The reference indices are based on the weighted average spot price of Bitcoin or Ethereum over 24 hours’ trading volume, calculated using aggregated market prices from major virtual asset exchanges, and denominated in US dollars in real-time. The reference exchange rate is designed for financial product settlement and is calculated daily at 4:00 PM Hong Kong time.
The index series will be the first virtual asset index series developed in Hong Kong that complies with European Union Benchmark Regulation (EUBMR) standards, managed and calculated jointly by a benchmark management company registered in the UK and a virtual assets data and index provider, CCData.
In 2022, the Government of the Hong Kong Special Administrative Region issued a policy statement on the development of virtual assets, hoping to cultivate a vibrant virtual asset industry and ecosystem in Hong Kong. The launch of the Hong Kong Exchange Virtual Asset Indices Series will help the public increase their understanding of virtual asset investment trends through providing real-time data and daily reference prices within the Asian time zone.
More details regarding the design and calculation methods of the index series will be announced as appropriate.