Bitcoin News Today: Hong Kong's ETF Breakthrough: Regulated Crypto Access for All Investors

MicroBit Capital Management has launched the first dual spot Bitcoin and Ether ETFs on the Hong Kong Stock Exchange (HKEX) in 2025, offering investors a regulated and streamlined approach to accessing the two largest digital assets. The ETFs, MicroBit Bitcoin Spot ETF (3430.HK / 9430.HK) and MicroBit Ether Spot ETF (3425.HK / 9425.HK), provide exposure to Bitcoin and Ethereum in both HKD and USD counters, enhancing accessibility for a broad range of investors, including institutional and retail clients. The launch marks a significant milestone in the development of the Hong Kong digital asset market, offering a unified and compliant investment vehicle [1].

The ETFs are designed with operational simplicity, enabling investors to trade via standard brokerage accounts without the need for direct custody or digital wallets. This facilitates a seamless onboarding process for investors unfamiliar with cryptocurrency management. The funds track Asia Pacific variants of the CME CF Bitcoin Reference Rate and CME CF Ether-Dollar Reference Rate, which are administered by CF Benchmarks Ltd. and overseen by the UK Financial Conduct Authority. These indices are constructed using a volume-weighted median pricing methodology, designed to resist manipulation and ensure pricing accuracy [1].

A notable feature of the MicroBit Ether Spot ETF is its inclusion of Ethereum staking capabilities. Up to 30% of the fund’s Ether holdings may be staked through SFC-licensed virtual asset trading platforms or approved third-party staking services. Staking rewards will be reinvested into the fund, net of service fees and slashing penalties. This structure enhances the fund's yield potential and differentiates it from a majority of existing ETH ETFs, which do not include staking features [1].

The launch also emphasizes the role of regulated infrastructure in the ETFs' operations. The assets are held by Hash Blockchain Limited and HashKey Custody Services, ensuring secure and compliant digital asset storage. The MicroBit funds are structured to provide direct spot exposure to Bitcoin and Ether, without reliance on derivatives or synthetic instruments. This physical ownership model aligns with institutional-grade investment standards and reinforces the transparency of the underlying assets [1].

The ETFs are supported by a benchmark methodology that aligns with the time zone and trading patterns of the Asia Pacific region. The CME CF Bitcoin Reference Rate – Asia Pacific Variant (BRRAP) and CME CF Ether-Dollar Reference Rate – Asia Pacific Variant (ETHUSD_AP) anchor to 4 pm Hong Kong Time, ensuring consistency with regional capital market infrastructure. This alignment supports tighter bid/ask spreads and enhances portfolio management for investors operating within APAC time windows. The uniform replication methodology across both ETFs further optimizes cross-asset portfolio strategies [1].

The introduction of these ETFs underscores the growing institutional interest in regulated crypto investment vehicles and positions Hong Kong as a regional hub for digital asset innovation. By offering a coordinated dual ETF launch combined with the unique staking-enabled Ether product, MicroBit joins a small group of issuers delivering next-generation crypto products under full regulatory oversight. The integration of the CF Benchmarks indices ensures these products meet global standards for accuracy and replicability, thereby enhancing market confidence [1].

Source:

[1] MicroBit launches Bitcoin and Ether Spot ETFs in Hong Kong powered by CF Benchmarks Asia Pacific indices (https://www.cfbenchmarks.com/blog/microbit-launches-bitcoin-and-ether-spot-etfs-in-hong-kong-powered-by-cf-benchmarks-asia-pacific-indices)