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Bosera HashKey Ether ETF

Important Notice

Investment involves risks. Past performance is not indicative of future performance. Investors should not make any investment decision solely based on the information provided in this material. Investors should refer to the Prospectus and the Product Key Facts Statement of the Sub-Fund for further details, including product features and risk factors before making any investment decision.

  • Bosera HashKey Ether ETF (the “Sub-Fund”) is a sub-fund of the Bosera Global Exchange Traded Funds Series Open-ended Fund Company (“Company”), which is a public umbrella open-ended fund company established under Hong Kong law with variable capital with limited liability and segregated liability between sub-funds registered and incorporated under Part IVA of the Securities and Futures Ordinance (Cap. 571) (“SFO”). The Sub-Fund is a passively managed index exchange traded fund under Chapter 8.6 of the Code on Unit Trusts and Mutual Funds (the “Code”).

  • The Sub-Fund offers both listed class of shares (the “Listed Class of Shares”) and unlisted classes of shares (together the “Unlisted Classes of Shares”). This statement contains information about the offering of the “Listed Class of Shares”, and unless otherwise specified references to “Shares” in this statement shall refer to the “Listed Class of Shares”. Investors should refer to a separate statement for the offering of the Unlisted Classes of Shares.

  • The Listed Class of Shares of the Sub-Fund are listed on The Stock Exchange of Hong Kong Limited (the “SEHK”) and are traded on the SEHK like listed stocks.

  • Ether is a virtual asset which was released in 2015. Ether serves as the unit of account on an open-source, decentralized, peer-to-peer computer network (“Ethereum Network”). No single entity owns or operates the Ethereum Network. Ether is not a legal tender and is not backed by any authorities, government or corporations. The value of ether is determined, in part, by the supply of, and demand for, ether in the global markets for trading ether, market expectations for the adoption of ether as a decentralized store of value and medium of exchange, the number of merchants and/or institutions that accept ether as a form of payment and the volume of private end-user-to-end-user transactions. Please refer to the Prospectus for further details.

  • In seeking to achieve the investment objective, the Sub-Fund is passively managed by directly investing up to 100% of its NAV in ether through SFC-licensed virtual asset trading platform(s). Transaction and acquisition of ether by the Sub-Fund will be conducted through SFC-licensed virtual asset trading platform(s). The Sub-Fund will not acquire other types of investments except that the Sub-Fund may retain a small amount of cash (up to a maximum of 10% of its NAV) to pay ongoing fees and expenses and meet redemption requests. All of the Sub-Fund’s ether will be held by the Sub-Custodian.

  • Investors must pay attention to investment risks, including but not limited to:

    • The Sub-Fund's investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal. There is no assurance that the Sub-Fund will achieve its investment objective.

    • New innovation risk: Ether is a relatively new innovation and the market for ether is subject to rapid price swings, changes and uncertainty. It is not backed by any authorities, government or corporations. Continued and further development of the Ethereum Network and the acceptance and use of ether are subject to a variety of factors that are difficult to predict or evaluate. Any cessation or reversal of such development of the Ethereum Network or the acceptance of ether may adversely affect the price of ether and thus the Sub-Fund’s investment.

    • Unforeseeable risks: Given the rapidly evolving nature of ether, including advancements in the underlying technology, market disruptions and resulting governmental interventions that are unforeseeable, an investor may be exposed to additional risks which cannot currently be predicted.

    • Speculative risk: Ether is highly speculative as it has limited track record and lack of intrinsic value. Its value is primarily driven by supply and demand dynamics within the ether market and does not generate cash flows.

    • Extreme price volatility risk: Investing in ether and related products is highly volatile compared to investments in traditional securities, and their price movements are difficult to predict. The prices of ether have historically been extremely volatile. For example, the price of ether dropped 76% during the period from 10 November 2021 to 9 November 2022. Also, the value of ether could decline significantly in a short period of time and without warning, including to zero. For example, in 2020, the biggest single-day drop of the price of ether was 44%. The value of the Sub-Fund’s investments in ether could decline significantly and without warning, including to zero.

    • Risk relating to the limited history of ether: Ether and the Ethereum Network have a limited history, therefore, it is unclear how all elements of ether will unfold over time, specifically with regard to governance between miners, developers and users, as well as the long-term security model as the mining reward of ether decreases over time. Insufficient software development or any other unforeseen challenges that the ether community is not able to resolve could have an adverse impact on ether price and thus the Sub-Fund’s investment.

    • Cybersecurity, fraud, market manipulation and security failure risk: Ether may be subject to the risk of fraud, theft, manipulation or security failures, operational or other problems that impact ether trading venues. In particular, the Ethereum Network and entities that hold ether in custody or facilitate the transfers or trading of ether are vulnerable to various cyber attacks. Malicious actors may also exploit flaws in the code or structure in the Ethereum Network that will allow them to, among other things, steal ether held by others, control the blockchain, steal personally identifying information, or issue significant amounts of ether in contravention of the protocols. The occurrence of any of the above may have negative impact on the price of ether and thus the Sub-Fund’s investment.

    • Concentration of ownership risk: A significant portion of ether is held by a small number of holders who may have the ability to manipulate the price of ether. As a result, large sales by such holders could have an adverse effect of the market price of ether.

    • Changes in acceptance of ether: The value of ether is subject to risks related to its usage and there is no assurance that ether usage will continue to grow over the long-term to support its value. Reduction or slowdown in the acceptance and/or prevalence of ether may result in lack of liquidity, increased volatility or a significant reduction in the price of ether and thus the Sub-Fund’s investment.

    • Custody Risk: Ownership and rights to ether depend on securely storing and knowing the private key. If the private key is lost without a backup, access to the corresponding ether address is lost as well, with no possibility of restoration by the Ethereum Network. While the Manager has conducted due diligence on the Sub-Custodian and believes that there are security procedures in place for the Sub-Fund by the Sub-Custodian, the Manager does not control the Sub-Custodian’s or the virtual asset trading platforms’ operations or their implementation of such security procedures and there can be no assurance that such security procedures will actually work as designed or prove to be successful in safeguarding the Sub-Fund’s assets against all possible sources of theft, loss or damage. While the Sub-Custodian will store most of the Sub-Fund’s ether holdings in the cold wallet (i.e. where the private keys to ether are kept in an offline environment), the Sub-Fund’s ether may be temporarily held online in the hot wallet (i.e. where the private keys to ether are kept in an online environment) for meeting the needs of subscriptions and redemptions, which is more susceptible to cyber-attacks. Any insurance coverage obtained by or for the Custodian/Sub-Custodian is solely for the benefit of the Custodian/Sub-Custodian and does not guarantee or insure the Sub-Fund in any way. There is no third-party insurance held on behalf of the ether accounts. The Sub-Fund itself does not insure its holdings in ether. While the Sub-Custodian is required by the applicable Laws and Regulations to have in place a compensation arrangement to cover potential loss of client Virtual Assets through third-party insurance or other permitted means, such compensation arrangement is shared among all clients of the Sub-Custodian and is not specific to the Sub-Fund. There is no assurance that such compensation arrangement is adequate to protect the Virtual Assets of the Sub-Fund from all possible losses. Where the compensation arrangement of the Sub-Custodian is not sufficient to cover the loss of Virtual Assets of the Sub-Fund, neither the Manager nor the Sub-Fund will be responsible for the shortfall.

    • Counterparty Risk: Counterparty risk involves the risk that a counterparty or third party (e.g. the Custodian, the Sub-Custodian and virtual asset trading platform(s)) will not fulfil its obligations to a Sub-Fund and settle a transaction in accordance with market practice. A Sub-Fund may be exposed to the risk of a counterparty through investments. A Sub-Fund may be exposed to the credit risk of any Custodian, Sub-Custodian and virtual asset trading platform(s), or any depository used by the Custodian where cash or other Scheme Property is held by the Custodian, Sub-Custodian or other depositaries. In the event of the insolvency of the Custodian, Sub-Custodian or other depositaries, a Sub-Fund will be treated as a general creditor of the Custodian, Sub-Custodian or other depositaries in relation to cash holdings of the relevant Sub-Fund. The Sub-Fund’s investments are however maintained by the Custodian, Sub-Custodian or other depositaries in segregated accounts and should be protected in the event of insolvency of the Custodian, Sub-Custodian or other depositaries. A Custodian may be unable to perform its obligations due to credit-related and other events like insolvency of or default of it. In these circumstances the relevant Sub-Fund may be required to unwind certain transactions and may encounter delays of some years and difficulties with respect to court procedures in seeking recovery of the relevant Sub-Fund’s assets.

    • Regulatory risk: The regulation on ether, digital assets and related products and services continues to evolve and increase. To the extent that future regulatory actions or policies limit or restrict ether usage, ether trading or the ability to convert ether to fiat currencies, the demand for and value of ether may be reduced significantly. Changes to existing regulation (e.g., regarding dealing in virtual asset-related products) may also impact the ability of the Sub-Fund to achieve its investment objective or operate as planned.

    • Fork risk: As the Ethereum Network is an open-source project, the developers may suggest changes to the ethereum software from time to time. If the updated ethereum software is not compatible with the original ethereum software and a sufficient number (but not necessarily a majority) of users and miners elect not to migrate to the updated ethereum software, this would result in a “hard fork” of the Ethereum Network, with one prong running the earlier version of the ethereum software and the other running the updated ethereum software, resulting in the existence of two versions of Ethereum Network running in parallel and a split of the blockchain underlying the Ethereum Network. The occurrence of such “fork” may result in an adverse impact on the price and liquidity of ether and thus the Sub-Fund’s investment.

    • Air drop risk: A substantial giveaway of ether to participants in the Ethereum Network (sometimes referred to as an “air drop”) may result in a significant and unexpected declines in the value of ether and thus the Sub-Fund’s investment.

    • Contagion risk: The collapse of any major players in the crypto ecosystem (for example, wallets and exchanges) may have contagious adverse effects on the values of virtual assets including ether and the value of the Sub-Fund’s investments.

    • Control and potential manipulation of Ethereum Network risk: Ethereum Network is vulnerable to malicious attack and malicious actor would be able to gain full control of the network and the ability to manipulate the blockchain. If an entity gains control of over 51% of the compute power (requiring 51% ownership of the ether that is staked with validators) the entity could use its majority share to double spend ether (i.e. the entity would send ether to one recipient, which is confirmed in the existing blockchain, while also creating a shadow blockchain that sends that same ether to another entity under its control). After a period of time, the entity will release its hidden blockchain and reverse previously confirmed transactions, and due to the way mining works, that new blockchain will become the record of truth. This would significantly erode trust in the Ethereum Network as a store of value and means of exchange which may significantly decrease the value of the ether and in turn the NAV of the Shares. The two largest miners or pools of Ethereum control in the aggregate more than 51% of the Ethereum Network.

    • Illicit use of ether: Ether can be used to purchase illegal goods, fund illicit activities or launder money. Negative developments of ether may affect the general outlook on the industry as a whole, trigger governmental intervention/restrictions/regulations, and may have adverse effect on the Sub-Fund’s investments.

    • Risks associated with virtual asset trading platforms: The virtual asset trading platforms that the Sub-Fund may acquire and dispose of ether which are still developing. The ether traded on these virtual asset trading platforms may be subject to lower liquidity compared to other spot ether trading venue. As such, there may be a delay in the Sub-Fund's ability to acquire or dispose of its investments from these virtual asset trading platforms. The bid and offer spreads of the price of ether on these virtual asset trading platforms may be large and the Sub-Fund may incur significant trading costs. In the event that the virtual asset trading platform’s licence from the SFC is being revoked/terminated or otherwise invalidated, the Sub-Fund may be prohibited from conducting transactions and acquisitions of ether.

  • If there is a suspension of the inter-counter transfer of Shares between the counters and/or any limitation on the level of services by brokers and HKSCC participants, Shareholders will only be able to trade their Shares in one counter only, which may inhibit or delay an investor dealing. The market price of Shares traded in each counter may deviate significantly. As such, investors may pay more or receive less when buying or selling Shares traded on one counter on the SEHK than in respect of Shares traded in another counter and vice versa.

  • The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the NAV and may deviate significantly from the NAV per Share.

  • As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Shares on the SEHK, investors may pay more than the NAV per Share when buying Shares on the SEHK, and may receive less than the NAV per Share when selling Shares on the SEHK.

  • The Sub-Fund may be terminated early under certain circumstances, for example, if the size of the Sub-Fund falls below [USD 10,000,000] (or equivalent). Investors may not be able to recover their investments and suffer a loss when the Sub-Fund is terminated.

  • Although the Manager will use its best endeavours to put in place arrangements so that at least one market maker will maintain a market for the Shares traded in each counter and that at least one market maker to each counter gives not less than 3 months’ notice prior to terminating market making under the relevant market maker agreement, liquidity in the market for the Shares may be adversely affected if there is no or only one market maker for the Shares traded in any available counter. There is also no guarantee that any market making activity will be effective.

This material has not been reviewed by the Securities and Futures Commission.

  • FUND INFORMATION
  • PERFORMANCE
  • TRACKING ERROR
  • HOLDINGS
  • DISTRIBUTION
  • FUND LITERATURE
  • FUND NEWS
KEY INFORMATION
Fund Manager
Bosera Asset Management (International) Co., Limited
Sub Fund Manager
HashKey Capital Limited
Custodian
BOCI-Prudential Trustee Limited
Sub-Custodian
Hash Blockchain Limited (acting via its associated entity HashKey Custody Services Limited)
Outstanding Units
6,400,000.00
Listing Date
USD counter - Listed Share Class: 30/4/2024
HKD counter - Listed Share Class: 30/4/2024
Base Currency
US dollars (USD)
Trading Currency
Hong Kong dollars (HKD) – HKD counter
US dollars (USD) – USD counter
Ongoing charges over a year8
Estimated to be 0.85%
Management Fee^
0.60% 0% per annum
^ The Manager will waive the management fees chargeable to the Sub-Fund from 30 April 2024 to 31 August 2024.
Actively Managed
No
Financial Year End
31 December
Participating Dealers9
China Merchants Securities (HK) Co. Limited
Eddid Securities and Futures Limited
Mirae Asset Securities (HK) Limited
Victory Securities Company Limited
Huatai Financial Holdings (Hong Kong) Limited
Arta Global Markets Limited
Market Makers (Listed Share Class USD Counter)10
Link to latest list of market makers
Market Makers (Listed Share Class HKD Counter) 10
Link to latest list of market makers
INTRA-DAY ESTIMATED NAV1,2,3 & MARKET PRICE4
DateTimeUSDHKD#
Intra-day Estimated NAV Per Unit14/06/202404:00 pm3.510127.4139
Intra-day Market Priced14/06/202404:08 pm3.500027.4400
Date
Intra-day Estimated NAV Per Unit14/06/2024
Intra-day Market Priced14/06/2024
# Exchange rate of USD to HKD : 7.8100 (for reference only) Data source: ICE Data Services d=at least 15 minutes delay Hong Kong Time: 06:40 pm
FUND OBJECTIVE
The investment objective of the Sub-Fund is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the price of ether as reflected by the CME CF Ether-Dollar Reference Rate - Asia Pacific Variant (the “Index”) so as to provide exposure to the value of ether.
TRADING INFORMATION
USD CounterHKD Counter
Stock Code0900903009
Trading CurrencyUS dollars (USD)Hong Kong dollars (HKD)
Primary market - Application Unit SizeMinimum 100,000 Shares or multiples thereofMinimum 100,000 Shares or multiples thereof
Secondary market - Trading Board Lot Size10 Share10 Share
ISIN CodeHK0001010633HK0001010625
Bloomberg Ticker9009 HK Equity3009 HK Equity
SEDOL CodeBSC9SC8BSC9SH3
USD Counter
Stock Code09009
Trading CurrencyUS dollars (USD)
Primary market - Application Unit SizeMinimum 100,000 Shares or multiples thereof
Secondary market - Trading Board Lot Size10 Share
ISIN CodeHK0001010633
Bloomberg Ticker9009 HK Equity
SEDOL CodeBSC9SC8
MARKET INFORMATION5
DateLastChange%Change
Official NAV per Share in USD514/06/2024USD 3.51350.01730.49
NAV per Unit in HKD (reference)614/06/2024HKD 27.44320.14110.52
Closing Price for USD Traded Share714/06/2024USD 3.50000.01000.29
Closing Price for HKD Traded Share714/06/2024HKD 27.44000.16000.59
Date
Official NAV per Share in USD514/06/2024
NAV per Unit in HKD (reference)614/06/2024
Closing Price for USD Traded Share714/06/2024
Closing Price for HKD Traded Share714/06/2024

1.IOPV calculations and delayed market data as shown on the website of Bosera Asset Management (International) Co., Limited (http://www.bosera.com.hk) (the “data”) are provided by ICE Data Indices, see ICE Terms of Use, and are updated during HKEx trading hours. Powered by Factset.
2.IOPV is indicative and for reference purposes only. The Sub-Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates (“ICE Data”) and ICE Data or its respective third-party suppliers make no express or implied warranties, and hereby expressly disclaim all warranties of merchantability or fitness for a particular purpose with respect to the iNAV, IOPV, fund or any fund data included therein. In no event shall ICE Data have any liability for any special, punitive, direct, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.
3.HKEx information services limited, its holding companies and/or any subsidiaries of such holding companies endeavor to ensure the accuracy and reliability of the information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.
4.The Intra-day Market Price is provided on a 15-minute delayed basis by ICE Data Indices.
5.Change is calculated on NAV to NAV basis in USD and assumes dividend will not be reinvested. Change of the official NAV per Share in USD and change of the reference NAV per Share in HKD indicate the change of the NAV per Share since previous business day where the SEHK is opened for normal trading (the "Dealing Day"). Please refer to the Prospectus for more information on determination of NAV. The official NAV per Share in USD is provided by BOCI-Prudential Trustee Limited.
6.The NAV per Share in HKD are indicative and for reference only and is calculated using the official NAV per Share in USD multiplied by an assumed foreign exchange rate (i.e. not a real time exchange rate) being the exchange rate quoted by Bloomberg for USD at 4:00 p.m. (Hong Kong time) as of the same Dealing Day. The “Dealing Day” the business day the SEHK market is opened for normal trading.
7.Change of the closing price in USD and HKD traded shares indicate change of closing price since previous SEHK trading day (Source: Bloomberg). The official closing NAV per Share in USD will remain unchanged during the period when the SEHK is closed.
8.The ongoing charges figure is indicative only as the Sub-Fund is newly set up. It represents the sum of the estimated ongoing expenses over a 12-month period chargeable to the relevant Class expressed as a percentage of the NAV of the relevant Class. The actual figure may be different from this estimated figure and it may vary from year to year.
9.Additional participating dealer(s) will be appointed from time to time.
10.Please refer to HKEx website for the most updated information. Additional Market Maker(s) will be appointed from time to time.
CF Benchmarks Product Disclaimer:
CF BENCHMARKS LTD INDEX DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR CERTAIN BOSERA ASSET MANAGEMENT (INTERNATIONAL) CO., LTD PRODUCTS. CF BENCHMARKS LTD, ITS LICENSORS AND AGENTS HAVE NO OTHER CONNECTION TO BOSERA ASSET MANAGEMENT (INTERNATIONAL) CO., LTD PRODUCTS AND SERVICES AND DO NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY BOSERA ASSET MANAGEMENT (INTERNATIONAL) CO., LTD PRODUCTS OR SERVICES. CF BENCHMARKS ITS LICENSORS AND AGENTS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE BOSERA ASSET MANAGEMENT (INTERNATIONAL) CO., LTD PRODUCTS AND SERVICES. CF BENCHMARKS ITS LICENSORS AND AGENTS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX LICENSED TO BOSERA ASSET MANAGEMENT (INTERNATIONAL) CO., LTD AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.

For more information, please contact Bosera Asset
Management (International) Co., Limited directly.

  • (852)2537 6658
  • HKSales@bosera.com
  • Suite 4109, Jardine House, One Connaught Place, Central, Hong Kong