Product Summary
Bosera Global Exchange Traded Funds Open-Ended Fund Company
Bosera HashKey Ether ETF (Listed Share Class)
April 2024
Issuer: Bosera Funds (International) Limited
- This product is a passive exchange-traded fund (ETF) that directly holds Ether (ETH).
- The ETF’s investment in Ether is exposed to major risks, including extreme price volatility, custody risks, cybersecurity threats, and fork risks.
- Ether’s value may plummet sharply within a short period—even to zero. For example, in 2020, Ether recorded a single-day drop of 44%[1]. Investors could lose their entire investment overnight.
- This summary provides key details about the product. It forms part of the prospectus and should not be the sole basis for investment decisions.
Key Data
| Listing Details | HKD Counter | USD Counter |
|---|---|---|
| Stock Code | 3009 | 9009 |
| Board Lot Size | 10 shares | 10 shares |
| Manager | Bosera Funds (International) Limited | |
| Sub-Manager | HashKey Capital Limited | |
| Custodian | BOCI-Prudential Trustee Limited | |
| Sub-Custodian (for Ether) | Hash Blockchain Limited (via HashKey Custody Services Limited) | |
| Virtual Asset Trading Platform | HashKey Exchange (operated by Hash Blockchain Limited) | |
| Estimated Ongoing Charges Ratio | 0.85% | |
| Estimated Annual Tracking Difference | -0.85% | |
| Underlying Index | CME CF Ether-Dollar Reference Rate (Asia-Pacific Closing Price) | |
| Base Currency | USD | |
| Trading Currency | HKD / USD | |
| Dividend Policy | No distributions |
Fund Website: Bosera Hong Kong (Unaudited by SFC)
Investment Strategy
Objective
To track the CME CF Ether Index (Asia-Pacific Closing Price), providing investors with exposure to Ether’s price performance (before fees and expenses).
Strategy
- Direct investment in Ether via SFC-licensed virtual asset trading platforms.
- No leverage or derivatives.
- Cold wallet storage for security (with minor hot wallet allocations for liquidity).
- No staking of held Ether.
Index Methodology
- CME CF Ether Index: Aggregates Ether spot prices from major exchanges (e.g., Coinbase, Kraken).
- Updated hourly at 4:00 PM HKT.
- Managed by CF Benchmarks Ltd. (FCA-regulated).
Key Risks
1. Ether-Specific Risks
- Volatility: Ether’s price dropped 76% (2021–2022).
- Custody Risks: Loss of private keys = irreversible loss.
- Forks: Hard forks may split the Ethereum network, affecting Ether’s value.
- Regulatory Uncertainty: Global crackdowns could devalue Ether.
2. ETF Operational Risks
- Tracking Error: Fees may cause deviation from the index.
- Liquidity Risk: Low trading volume on HashKey Exchange.
- Early Termination: Possible if fund size falls below $10M.
3. Market Risks
- Premium/Discount: Shares may trade above/below NAV.
- Time Lag: Ether trades 24/7, but ETF shares do not.
Fees & Charges
| Fee Type | Rate |
|---|---|
| Management Fee | 0.60% p.a. |
| Custodian Fee | Up to 1% p.a. |
| Trading Fees (HKD) | 0.0085% (total) |
👉 Learn more about Ether ETF trading
FAQ
Q: Can I lose all my money?
A: Yes. Ether’s price may drop to zero, erasing your investment.
Q: How is Ether stored?
A: 95% in cold wallets, 5% in hot wallets for liquidity.
Q: What happens during a fork?
A: The manager will decide which chain to follow, potentially impacting NAV.
👉 Explore Ether ETF risks in detail
Disclaimer: Investors should consult a financial advisor. The SFC does not endorse this product.
[1] Source: Bloomberg, GMT 00:00 pricing.