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Pando’s CF Benchmarks-powered Bitcoin ETF debuts in Hong Kong

Pando Bitcoin ETF investors are assured of optimal digital asset investment management expertise, as Pando Finance leverages its track record in Web3 innovation and venture capital to enable best-in-class crypto market execution.

CF Benchmarks

• 4 min read
Pando’s CF Benchmarks-powered Bitcoin ETF debuts in Hong Kong

Pando Bitcoin ETF (2818.HK) lists on Hong Kong’s HKEX, powered by the benchmark of excellence in regional BTC pricing, our CME CF Bitcoin Reference Rate – Asia Pacific Variant (BRRAP)

Why Pando is distinct

CF Benchmarks congratulates Pando Finance on the successful listing of the Pando Bitcoin ETF (2818.HK) today on the Hong Kong Stock Exchange (HKEX), contributing to the continued development of the region’s digital asset ETF landscape.

In a progressively competitive market for digital asset products, the Pando Bitcoin ETF distinguishes itself through its dual-mode subscription flexibility, and a structure informed by digital asset-native expertise yet driven by regulatory compliance.

Pando Bitcoin ETF investors are assured of optimal digital asset investment management expertise, as Pando Finance leverages its track record in Web3 innovation and venture capital to enable best-in-class crypto market execution.

Key Pando Bitcoin ETF features

The Pando Bitcoin ETF enables investors to gain exposure to Bitcoin’s price movements with the ease, safety, and operational familiarity of a listed equity. Further key features are listed below.

  • Dual subscription choice: Available via both cash and in-kind creation/redemption mechanisms, the ETF provides flexibility to sophisticated institutions with digital asset reserves, while offering cash-based access to traditional players
  • No wallets or keys needed: Investors transact via brokerage accounts without direct digital asset custody, dramatically lowering operational complexity and the compliance burden
  • Trusted service providers: ETF assets are administered by BOCI-Prudential Trustee, with OSL Custody acting as sub-custodian, while trading is conducted on OSL Exchange; all operating strictly within Hong Kong’s regulatory frameworks

The CME CF BRRAP advantage

Regulatory alignment

While Pando Bitcoin ETF is the first crypto fund to be approved for listing in Hong Kong this year, like all other spot Bitcoin ETFs listed in the region, Pando Bitcoin ETF utilizes CF Benchmarks’ CME CF Bitcoin Reference Rate – Asia Pacific Variant (BRRAP) as its index for net asset value (NAV) calculation.

This continued uniform adoption of BRRAP underscores a regional commitment by issuers – now including Pando Finance – and Hong Kong’s main markets regulator, the Securities and Futures Commission (SFC) to a regionally-synchronized benchmark, standardized to the highest possible level of quality, integrity, and transparency, enhancing investor confidence and aligning with global best practices in crypto investment products.

Asia-Pacific Replication

With BRRAP being a variant of CF Benchmarks’ flagship CME CF Bitcoin Reference Rate (BRR) yet calibrated to Bitcoin’s U.S. dollar price at 4 pm Hong Kong Time, its time-specific snapshot aligns with regional trading conventions, while maintaining the proven qualities of BRR, the world’s most trusted, most used, and most liquid institutional Bitcoin benchmark.

These qualities enable ETFs tracking BRRAP — now including the Pando Bitcoin ETF — to publish NAVs, rebalance baskets, and execute trades in a manner consistent with activity patterns of the region’s markets.

BRRAP safeguards

  • Vetted exchanges: BRRAP aggregates Bitcoin trade data from a set of rigorously vetted digital asset exchanges, continuously reviewed for adherence to regulated standards of reliability and transparency
  • Volume-weighted median pricing: To resist manipulation, BRRAP applies a volume-weighted median methodology, neutralizing outlier trades and ensuring that no venue or actor can skew the rate
  • FCA oversight: BRRAP is published and administered by CF Benchmarks Ltd., the Benchmark Administrator authorized by the UK FCA under the UK Benchmarks Regulation framework. This means BRRAP benefits from full regulatory oversight, governance, and auditability

BRRAP’s superior replicability

For passive digital asset ETFs, the ability to replicate benchmark performance closely is not a given — particularly in volatile, fragmented crypto markets. Pando’s adoption of BRRAP supports this objective, as summarized below:

  • Tight tracking: Time zone-specific price anchoring enables tighter bid/ask spreads for Pando Bitcoin ETF authorized participants (APs) and market makers, and lower tracking error for investors
  • NAV alignment: Pando Bitcoin ETF’s unit creations and NAV are pegged to an end-of-day benchmark synchronized with the region's capital markets infrastructure
  • APAC integration: Institutional Pando Bitcoin ETF investors managing local mandates, or APAC time-zone risk windows, benefit from a benchmark reflecting local price formation dynamics

Pando Bitcoin ETF: A compelling new combination

With the launch of the Pando Bitcoin ETF, Pando Finance contributes to Hong Kong’s development as a regulated and innovation-aligned centre for digital finance.

At the same time, Pando brings its award-winning insights into global macroeconomics, digital assets, and capital market trends, to management of the fund, qualities that will almost certainly bolster its already robust client base and extend its growing digital asset financial ecosystem further.

Finally, by adopting CF Benchmarks’ CME CF Bitcoin Reference Rate – Asia Pacific Variant (BRRAP) as the ETF’s benchmark, Pando provides institutions with a further tool for Bitcoin exposure that reflects the practical demands of Asia-Pacific market participants, while adhering to globally recognized standards of accuracy, reliability and integrity.

All told, Pando Bitcoin ETF offers existing and incoming Bitcoin investors in Hong Kong a compelling new combination of crypto asset-class savvy, regulatory assurance, and best-in-class price integrity and tracking.

  • Read our CME CF BRRAP benchmark research:
Suitability Analysis of the CME CF Ether-Dollar Reference Rate - Asia Pacific Variant as a Basis for Regulated Financial Products - CFB
Suitability Analysis of the CME CF Ether-Dollar Reference Rate - Asia Pacific Variant as a Basis for Regulated Financial Products - CFB
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