The launch of spot Bitcoin and Ethereum ETFs in Hong Kong marks a pivotal moment for the global crypto market. On April 24, 2024, China Asset Management (Hong Kong) announced that its华夏比特币 ETF and华夏以太坊 ETF had received approval from the Securities and Futures Commission (SFC) of Hong Kong. The funds are set to launch on April 29, with trading scheduled to begin on April 30 on Hong Kong exchanges.
This milestone makes Hong Kong the first market in Asia to offer spot crypto ETFs—investment vehicles that directly track the real-time price of underlying digital assets like Bitcoin (BTC) and Ethereum (ETH). The move is more than just regulatory progress; it signals a broader shift toward institutional acceptance and mainstream integration of digital assets in one of Asia’s most influential financial hubs.
👉 Discover how regulated crypto products are reshaping global investment strategies.
The Rise of the "Hong Kong Crypto Narrative"
The term "Hong Kong crypto narrative" has gained traction since early 2023, when the city announced its plan to implement a licensing regime for virtual asset service providers by June 2023. This regulatory clarity positioned Hong Kong as a potential leader in Asia’s Web3 and digital asset ecosystem.
Projects that align with Hong Kong’s vision—such as those focused on compliance, asset tokenization, institutional-grade infrastructure, or strong regional presence—have been grouped under this emerging investment theme. In early 2024, the flagship asset of this narrative, Conflux (CFX), surged from $0.19 to $0.52 within two months, while many other related tokens saw gains of 2x–3x.
Beyond price movements, the momentum reflects growing confidence in Hong Kong’s ambition to become a global Web3 hub. From large-scale blockchain conferences to major firms establishing regional headquarters in the city, the ecosystem is gaining both depth and visibility.
But with spot ETFs now live, what other projects tied to the Hong Kong narrative deserve attention?
Key Projects in the Hong Kong Crypto Ecosystem
Alchemy Pay (ACH): Bridging Fiat and Crypto
Founded in 2018, Alchemy Pay is one of the earliest players in crypto-fiat payment integration. With a team experienced in payments, telecom, and fintech, the company has built a robust infrastructure enabling merchants and users to transact between traditional currency and digital assets seamlessly.
In 2023, Alchemy Pay secured three key licenses, and its 2024 roadmap includes plans to obtain over 20 regulatory approvals globally—including its first U.S. Money Transmitter License (MTL). This regulatory push supports its ambitious goal: launching a Web3 bank that allows both retail users and traditional institutions to enter the crypto economy with ease.
The company is also enhancing its crypto card functionality, aiming for compatibility with Apple Pay, Google Pay, and Alipay HK—already supported today. As cross-border digital payments evolve, Alchemy Pay stands at the intersection of compliance, usability, and global reach.
Measurable Data Token (MDT): Powering Decentralized Data Economy
Based in Hong Kong, Measurable Data (MDT) is a decentralized data exchange platform that enables secure, anonymous transactions between data providers and buyers. Its ecosystem includes tools like MailTime AI and Measurable AI, which leverage blockchain to create transparent and user-controlled data markets.
With a total supply of 1 billion MDT tokens and a current market cap around $35.8 million, the project offers a compelling use case for privacy-preserving data monetization—an increasingly relevant theme as AI models demand vast datasets.
As concerns over data ownership grow, MDT’s model empowers individuals to profit from their digital footprint without sacrificing anonymity—a vision aligned with Web3’s core principles.
SelfKey (KEY): Identity Ownership in a Digital World
SelfKey is a Hong Kong-based platform designed to give individuals full control over their digital identities. Through its identity wallet, users can securely store personal information, manage crypto portfolios, and access financial, immigration, and crypto services—all without relying on centralized intermediaries.
By simplifying decentralized KYC (Know Your Customer) processes, SelfKey reduces friction for onboarding into DeFi and other blockchain-based services. It also enables trusted parties—such as banks or government agencies—to verify identity claims privately and efficiently.
In an era where digital identity theft and surveillance are growing concerns, SelfKey offers a privacy-first alternative that resonates with both individuals and institutions exploring compliant Web3 adoption.
VeChain (VET): Enterprise Blockchain with Chinese Roots
Launched in 2015 by Sunny Lu, former CIO of Louis Vuitton China, VeChain is a Layer 1 blockchain focused on enterprise supply chain solutions. It integrates with IoT devices to track product authenticity, logistics, storage conditions, and more—offering transparency across complex global supply chains.
Partnerships with major Chinese enterprises—including China Tobacco and Haier—underscore its real-world utility. VeChain uses a dual-token model: VET for value transfer and VTHO for transaction fees (“gas”).
While VET has shown steady performance compared to more volatile peers, its long-term potential lies in driving efficiency and trust in industries where provenance matters—from luxury goods to pharmaceuticals.
Phoenix (PHB): Web3-Powered AI Infrastructure
Phoenix is building a blockchain infrastructure platform tailored for decentralized AI and data-driven networks. Its suite includes AlphaNet—an AI-powered trading analytics tool—and NYBL, an AIGC-powered metaverse project.
What sets Phoenix apart is its AI computing layer, designed to scale AI tasks like large language models (LLMs), federated learning, and edge computing using Web3 architecture. This allows developers to deploy AI applications with decentralized incentives and improved data sovereignty.
Strategic tech partners based in Hong Kong—including APEX, FLC, and Tensor Investment Corporation—provide critical support, reinforcing Phoenix’s role in bridging local innovation with global AI trends.
Coin98 (C98): Multi-Chain DeFi Gateway
Coin98 Labs operates as an open financial infrastructure provider across multiple blockchains. Its ecosystem includes DeFi wallets, swap platforms, and tools for NFT and liquidity management—all aimed at simplifying access to decentralized finance.
A significant endorsement came when First Digital Trust, a digital asset custodian under Hong Kong-based Legacy Trust, announced support for C98 token custody. This institutional validation strengthens Coin98’s position as a trusted gateway for users navigating multi-chain environments.
With DeFi continuing to expand beyond Ethereum into ecosystems like Solana, Cosmos, and zkSync, Coin98’s infrastructure plays a crucial role in interoperability and user experience.
Frequently Asked Questions (FAQ)
Q: What are spot crypto ETFs?
A: Spot ETFs directly hold the underlying asset—like Bitcoin or Ethereum—and track its real-time market price. Unlike futures-based ETFs, they offer investors direct exposure without derivatives.
Q: Why is Hong Kong launching these ETFs significant?
A: As Asia’s first market to approve spot crypto ETFs, Hong Kong is setting a precedent for regulated crypto investment products. This enhances investor trust and could attract institutional capital across Asia.
Q: Are all “Hong Kong concept” projects based in Hong Kong?
A: Not necessarily. The term refers broadly to projects with strong ties—such as regulatory compliance efforts, team presence, strategic partnerships, or alignment with Hong Kong’s Web3 development goals.
Q: How do these projects benefit from Hong Kong’s regulatory framework?
A: Regulatory clarity allows companies to operate legally, seek licensing, partner with traditional finance players, and build trust with users—key advantages in a space often plagued by uncertainty.
Q: Can retail investors access these ETFs?
A: Yes. Unlike earlier restrictions, Hong Kong’s new rules allow retail investors to participate in spot crypto ETFs through licensed brokers and platforms.
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Final Thoughts: A New Chapter for Crypto in Asia
The approval of spot Bitcoin and Ethereum ETFs in Hong Kong is not just a local event—it's a catalyst for broader adoption across Asia. With clear regulations, growing institutional interest, and innovative projects rooted in or aligned with Hong Kong’s vision, the "Hong Kong crypto narrative" is evolving from speculation into tangible value creation.
Core keywords driving this trend include: Hong Kong crypto, spot ETF, Web3 regulation, asset tokenization, institutional crypto, DeFi infrastructure, digital identity, and AI blockchain.
As the ecosystem matures, investors should look beyond short-term price moves and focus on projects solving real problems—whether in payments, identity, supply chain transparency, or AI scalability.
👉 Stay ahead of the next wave of regulated crypto innovation.
The future of finance is being rewritten—and Hong Kong is firmly on the map.