Hong Kong Stock Concept Tracking | Asia's first batch of virtual asset spot ETF listed, cooperating companies may benefit (with concept stocks)

On April 30, Hong Kong Exchanges and Clearing Limited welcomed the listing of the first batch of virtual asset spot ETFs in Asia, increasing the variety of products in the Hong Kong market and providing investors with a richer selection, consolidating Hong Kong's position as the leading ETF market in Asia.

The first batch of virtual asset futures ETFs listed in 2022 has been favored by investors and has been actively traded.

The average daily trading volume of the three virtual asset futures ETFs listed in Hong Kong increased from HKD 8.9 million in 2023 to HKD 51.3 million in the first quarter of 2024, attracting a capital inflow of HKD 529 million.

Zhu Haokang, Managing Director of Huaxia (Hong Kong) Digital Asset Management and Family Wealth Management, stated that apart from Grayscale, the other 10 American Bitcoin spot ETF issuers had an initial issuance scale of USD 125 million on January 10 this year. The initial issuance scale of the three issuers in Hong Kong will exceed this number, with Huaxia Fund having the largest scale among the three.

Analysts predict that the asset management scale of Bitcoin and Ethereum spot ETFs in Hong Kong is expected to reach USD 1 billion in the future, but whether this goal can be achieved may depend on the speed of improvement in infrastructure and ecosystems.

Related companies involved in Hong Kong virtual asset spot ETFs:

OSL Group (00863.HK): OSL Group (00863.HK) announced that OSL Digital Securities Limited (OSL), a digital asset trading platform holding a license from the Securities and Futures Commission of Hong Kong, has become the first virtual asset trading and virtual asset custody partner of Huaxia Fund Hong Kong Limited, a leading asset management company in Hong Kong. Huaxia (Hong Kong) is a leading asset management company in Hong Kong, and this move supports its launch of the first spot Bitcoin and Ethereum exchange-traded funds (Huaxia Spot ETF) in Hong Kong. Huaxia Spot ETF will be listed and traded on the main board of the Hong Kong Stock Exchange today.

Hong Kong Exchanges (00388): In Q1 2024, the company's revenue and other income were HKD 5.201 billion, down 6% from Q1 2023, but up 7% from Q4 2023. The main business revenue decreased by 7% year-on-year, reflecting a decrease in trading and clearing fees due to a decrease in average daily turnover, a decrease in net investment income from margin and clearing fund investments, and a decrease in listing fee income. However, LME trading and clearing fee income increased due to higher trading volumes and fees, offsetting some of the decline. Spot market trading volume declined year-on-year in Q1 2024, but derivatives and commodities markets as well as the Shanghai-Hong Kong Stock Connect performed strongly. The Shanghai-Hong Kong Stock Connect expanded the scope of stock targets, with over a thousand new northbound trading stocks added since March 2023, leading to a 37% year-on-year increase in average daily turnover for the Shanghai Stock Connect and Shenzhen Stock Connect. In the first quarter of 2024, Hong Kong Exchanges introduced the Self-Match Prevention (SMP) service, allowing market participants to avoid unintentional self-matching