HONG KONG, April 30, 2024 /PRNewswire/ — Bosera Asset Management (International) Co., Limited (“Bosera International“) and HashKey Capital Limited (“HashKey Capital“) are pleased to announce that the Bosera HashKey Bitcoin ETF (3008.HK) and the Bosera HashKey Ether ETF (3009.HK) (collectively known as Bosera Hashkey Spot Virtual Asset ETFs or the Funds) commenced trading on the Hong Kong Stock Exchange (“HKEX”) today.
The two ETFs track the CME CF Bitcoin Reference Rate- Asia Pacific Variant and the CME CF Ether-Dollar Reference Rate- Asia Pacific Variant, respectively. They also innovatively introduce a coin-based subscription mechanism (allowing investors to directly use Bitcoin and Ether to subscribe for corresponding ETF shares), providing investors with a secure, compliant, and convenient way to participate in the virtual asset market.
Seizing Opportunities: Helping Investors Enter the “Crypto World” in a Compliant and Convenient Manner
Since the beginning of this year, under the wave of approvals for Bitcoin ETFs in the United States, Bitcoin has been in short supply, and its price has climbed by over 60% to reach record highs. The continuously rising asset scale has also made the trading and management value of virtual currencies increasingly important. The listing of Bosera HashKey Spot Virtual Asset ETFs means that global investors can enter the world of virtual assets for the first time in the Asian time zone and under a regulated environment.
Diversified Asset Allocation: As an asset class with low correlation to traditional assets, virtual currencies have become part of a diversified investment portfolio due to their high liquidity, cross-market global accessibility, and ability to provide diversified returns for investors.
Enhanced Compliance: The regulatory environment for the cryptocurrency market is unclear, but Bosera HashKey Spot Virtual Asset ETFs are regulated by the Hong Kong Securities and Futures Commission. Additionally, the ETF assets are entrusted to an independent custodian, BOCI-Prudential Trustee Limited, and Hash Blockchain Limited, protecting investors’ assets.
Convenient Trading: Bosera HashKey Spot Virtual Asset ETFs are listed on the Hong Kong Stock Exchange, allowing for HKD/USD/in-kind trading. Investors can easily buy and sell on the same day directly through their stock brokerage accounts, reducing operational difficulties and risks.
Increased Transparency: Bosera HashKey Spot Virtual Asset ETFs only track the prices of Bitcoin and Ether (net of fund fees). Price, holdings, net asset value, and secondary market information are all publicly transparent.
Lower Costs: The two ETFs can leverage economies of scale while significantly reducing other fees and fund operating costs, offsetting many costs individual investors face in purchasing, storage, and insurance, thereby enhancing investors’ satisfaction.
Moreover, unlike virtual asset futures ETFs, Bosera HashKey Spot Virtual Asset ETFs are more closely tied to the real Bitcoin and Ether markets. Spot ETFs are directly linked to the real-time prices of Bitcoin and Ether, allowing investors to buy or sell spot virtual asset ETF shares based on market changes, providing investors with more flexible investment and trading strategies.
Injecting New Vitality into Hong Kong’s Virtual Asset Ecosystem
Hong Kong has always been a pioneer in financial innovation. Since 2022, Hong Kong has officially begun supporting the development of the Web3 industry and continuously strengthening the regulation of virtual asset investments. The issuance of Bosera HashKey Spot Virtual Asset ETFs is expected to further promote the development of the virtual asset market in Hong Kong and even the entire Asia Pacific region, attracting more global capital inflows and stimulating the underlying vitality of Hong Kong’s virtual asset market. At the same time, the relevant regulatory systems and technical architectures will also provide important experience for other global financial centers to learn from.
About Bosera Asset Management (International) Co., Limited
Bosera Asset Management (International) Co., Limited (“Bosera International”) is a subsidiary of Bosera Asset Management Co., Limited (“Bosera”) and China Merchants Fund Management Co., Ltd. (“China Merchants Fund”). Both Bosera and China Merchants Fund are the leading asset management institutions in Mainland China.
Established on March 4, 2010, Bosera International is one of the first Chinese-based fund companies to launch an asset management business in Hong Kong. Since its establishment, Bosera International has grasped the opportunity of global asset allocation, adhered to the concept of value investment, formed a comprehensive product line with primarily focusing on stable fixed-income investment and covering active equity and passive index, and actively established partnerships with other international companies, to provide global investors with two-way and cross-border asset management services. Bosera International serves customers in major financial markets such as the United States, Europe, South Korea, Singapore, and Hong Kong. With 14 years of deep cultivation in Hong Kong, Bosera International has become one of the largest Chinese asset management companies in Hong Kong.
About HashKey Capital
Global in influence and crypto-native, HashKey Capital is a digital asset and blockchain leader helping institutions, founders and talents advance the blockchain industries.
As one of the largest crypto funds and the earliest institutional investor in Ethereum, HashKey Capital has managed over US$1 billion in client assets since its inception, with over 500 investments in infrastructure, tools, and applications.
With our deep knowledge across the blockchain ecosystem, HashKey Capital has built a robust network connecting founders, investors, developers, and regulators.
Disclaimer
Investment involves risks. Past investment performance is not necessarily indicative of future performance. Investors should not make investment decisions solely on the basis of the information contained herein. The above information is for reference only and does not constitute and should not be construed as an offer to subscribe or sell to any person. Investors should read the relevant prospectus and product key facts of the fund concerned, including the product features and risk factors set out therein, before making any investment decision. Investors should assess the suitability of investing in the product in the light of their own investment experience, investment objectives, financial position and level of risk exposure. If necessary, please seek independent professional advice.
Bosera Hashkey Virtual Asset Spot ETFs (the “Funds”) is sub-funds of Bosera Global Exchange Traded Funds Open-End Fund Company (the “Company”), a public umbrella open-ended fund company established under the laws of Hong Kong. The Company is a open-ended fund company incorporated under the laws of Hong Kong with limited liability for variable capital and segregation of liabilities between sub-funds. The Company is registered with the Securities and Futures Commission (the “SFC”) as an open-ended fund and the Company and the Fund have been authorised by the SFC under section 104 of the SFO. Registration or authorisation by the SFC is not a recommendation or endorsement of the Company or the Funds and does not guarantee the commercial merits of the Company or the Funds or their performance. It does not mean that the Company or the Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
Investors must be aware of investment risks, including but not limited to:
- The portfolio of the Funds may depreciate in value due to any risk factors and you may therefore suffer a loss of your investment in the Funds. There is no guarantee that the principal will be repaid. There is no guarantee that the Fund will achieve its investment objective.
- Risk of extreme price fluctuations: Investments in Cryptocurrency and related products are extremely volatile and unpredictable compared to traditional securities investments.
- Custody Risk: Ownership and rights to Cryptocurrency depend on the safe storage and knowledge of the private key. If the private key is lost and not backed up, access to the corresponding Cryptocurrency address is lost and the Cryptocurrency network cannot be restored. The Sub-Custodian is required to put in place compensation arrangements to cover potential losses of client virtual assets through third party insurance or other permitted means, but does not guarantee that such compensation arrangements will be sufficient to protect the Funds’ virtual assets from all possible losses. In the event that the Sub-Custodian’s compensation arrangements are insufficient to indemnify the Fund’s virtual assets, neither the Manager nor the Fund will be liable for the shortfall.
- Cybersecurity, fraud, market manipulation and security failure risk: Virtual asset may be subject to the risk of fraud, theft, manipulation or security failures, operational or other problems that impact virtual asset trading venues. In particular, the virtual asset Network and entities that hold virtual asset in custody or facilitate the transfers or trading of virtual asset are vulnerable to various cyber attacks. Malicious actors may also exploit flaws in the code or structure in the virtual asset Network that will allow them to, among other things, steal virtual asset held by others, control the blockchain, steal personally identifying information, or issue significant amounts of virtual asset in contravention of the protocols.
- Risks associated with virtual asset trading platforms: The virtual asset trading platforms on which the Funds may acquire and sell Cryptocurrency are still being established. Cryptocurrency traded on these virtual asset trading platforms may be less liquid than on other spot Cryptocurrency trading venues. The bid-ask spread in the price of Cryptocurrency on such virtual asset trading platforms may be substantial and funds may incur significant transaction costs. The Funds may be prohibited from trading and purchasing Cryptocurrency in the event that the licence of the virtual asset trading platforms issued by the SFC in Hong Kong is revoked/terminated or lapses for other reasons.
- Other risks: new innovation risk, unforeseen risk, speculative risk, cyber security, fraud, market manipulation and security failure risk, counterparty risk, regulatory risk, fork risk, etc.
This information has not been reviewed by the Securities and Futures Commission of Hong Kong. Publisher: Bosera International. Without the consent of Bosera International, you may not copy, distribute or reproduce any material or any part of this document.
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