Pando Finance, a Hong Kong-based virtual asset management firm, launched the Pando Bitcoin Exchange-Traded Fund (ETF) on the Hong Kong Stock Exchange on Friday, becoming the city’s first bitcoin ETF listing of the year.
The product offers local investors yet another way to gain exposure to cryptocurrencies.
The fund opened trading at HK$8.66 ($1.10) on Friday morning, a 10 percent premium to its indicative net asset value of HK$7.85, before ending the day at HK$7.98.
READ MORE: Asia’s first spot crypto ETFs to debut in Hong Kong Tuesday
It tracks the performance of bitcoin prices, and allows investors to trade using their existing brokerage accounts. Investors can choose between cash or in-kind redemption methods, providing flexibility in how they manage their investment.
Trevor Lee Chi-kee, senior director of investment products at the Securities and Futures Commission (SFC) of Hong Kong, said at the listing ceremony that the launch of one more virtual asset spot ETF will help solidify Hong Kong’s position as a global hub for digital assets.
He added that he hopes that industry players would continue to introduce more innovative products.
Pando Finance Founder and CEO Ren Junfei said it is a good timing for the company to roll out the bitcoin ETF. Both local and global markets have seen a noticeable uptick in enthusiasm for virtual assets this year, and collaboration among market entities has also improved, which have provided a favorable environment for this product, she said.
She also struck a positive tone on Hong Kong’s stock market. Ren said she expects ETF trading volumes to continue growing in the second half of the year, as market liquidity has improved with large-scale fundraising activities and strong capital inflows, including those from foreign investors.
Ren revealed that the company is planning to launch a staked spot ethereum ETF later this year, and is in talks with regulators regarding subscriptions and redemption mechanisms.
The Pando Bitcoin ETF follows the debut of Hong Kong’s first virtual asset spot ETFs in April 2024 when six products — covering bitcoin and ethereum — were listed by China Asset Management (Hong Kong), Bosera International, and Harvest Global Investments.
According to the latest data from the Hong Kong Stock Exchange, virtual asset ETFs dominated the top three spots among the best-performing ETFs in May. The Bosera HashKey Ether ETF, ChinaAMC Ether ETF, and Harvest Ether Spot ETF all delivered monthly returns exceeding 46 percent.
In response to the upcoming implementation of the Hong Kong Special Administrative Region’s Stablecoins Ordinance on Aug 1, Ren said the company might enable subscription and redemption of its products using stablecoin in the future.
Multiple financial and tech giants have announced their plans to apply for Hong Kong’s stablecoin issuer license after the regulations come into effect, such as Ant International and Standard Chartered (Hong Kong).
READ MORE: Bitcoin surges above $106,000 on strategic reserve hopes
Ren described stablecoin as a bridge between the digital asset industry and traditional finance, adding that as more banks and leading internet companies enter the market, they will help strengthen connections between digital finance and other traditional industries.
Bolstered by the vibrant market atmosphere, Hong Kong-listed cryptocurrency concept stocks have shown continued growth. For example, over the past five trading days, shares of Linekong Interactive Group soared more than 50 percent after the company announced the launch of a new crypto division. Singapore-headquartered Grandshores Technology Group increased nearly 30 percent.
According to Coingecko’s latest data, the total market capitalization of cryptocurrencies globally has exceeded $4 trillion, an all-time high.
Contact the writer at irisli@chinadailyhk.com
