May 28, 2025
By Our Correspondent
Hong Kong has led the Asia Pacific region in the development of crypto exchange-traded funds since the city introduced guidelines for tokenised funds in 2023, according to Emma Pecenicic, head of digital propositions and partnerships, Asia Pacific ex-Japan, at Fidelity International.
The guidelines include disclosures to make fund holdings more transparent, and came five years after the Securities and Future Commission formulated a regulatory approach for virtual assets in 2018.
While it took “a bit of time” to finalise details such as distribution of virtual asset-related products, Pecenicic is optimistic that the guidelines will help Hong Kong to capitalise on growth of the global tokenised asset market.
In an interview with Asia Asset Management, Pecenicic, a board member of the FinTech Association of Hong Kong, states that the city’s cryptocurrency exchange-traded fund (ETF) market has been expanding rapidly over the last two years.
In the past two years, the Hong Kong stock market has listed 18 bitcoin and ether spot, futures, inverse ETFs, and exchange-traded products.
According to the US investment advisory firm Boston advisory Group, tokenized assets globally—including $2 trillion from cryptocurrency funds—will approximately triple from US$600 billion this year to $18.9 trillion in 2033.
The approval of the first wave of bitcoin ETFs in the US, including Franklin Bitcoin ETF and Valkyrie Bitcoin ETF, highlights 2024 as a “pivotal year” for global crypto ETFs, according to Pecenicic.
The launch was the most successful ever. According to Pecenicic, the market for cryptocurrency ETFs in the US has grown to $100 billion.
However, she notes that because local investors still choose US funds, crypto ETFs in Asia Pacific countries like Hong Kong, Australia, and Japan lag well behind the US.
Financial regulators are trying to improve investor education because retail investor engagement is similarly low in the area. For example, Pecenicic points out that in Hong Kong, before purchasing virtual asset ETFs, ordinary investors must undergo risk evaluations.
