The Hong Kong Securities and Futures Commission (SFC) has released its quarterly report, which has exhibited significant growth in the HK ETF market. The report indicates a 34% year-on-year increase in the total market value of ETFs, with a net capital inflow of HKD 6.3 billion during the quarter.
SFC Q3 Report Focuses on Hong Kong ETFs Market
The Q3 report states, “Driving the growth of the city’s exchange-traded fund (ETF) market, the enhanced ETF Connect boosted the number of eligible Hong Kong ETFs to 16 with a total market cap of more than $300 billion (Note 1).”
Additionally, assets managed by funds registered in Hong Kong rose by 29.5% year-on-year to HKD 1.67 trillion, with a net inflow of approximately HKD 34 billion recorded in the same period.
The number of licensed asset management companies has gone up by 24% YoY, while the number of open-ended fund firms surged by 132.6%. The SFC also noted a rise in license applications from institutions and individuals, with YoY growth of 56% and 23%, respectively.
The SFC is currently reviewing license applications from 15 virtual asset trading firms, with 11 deemed to receive licenses. Several of these firms are expected to receive their license within the year through a speedy process.
The market cap of Asia’s first batch of VA spot ETFs listed in Hong Kong has increased by 70% with average daily turnover doubling since its release in April.
Speaking of ETF market, US, too has seen an impressive trajectory, US Bitcoin spot ETF has registered an inflow of over $223 million, and ETH ETF saw an inflow of over $102 million, which amounts to a cumulative total net inflow of $34.58 billion and $1.97 billion respectively.
