Hong Kong Approves Bitcoin and Ethereum ETFs, Establishing Itself as Crypto Hub
Hong Kong has solidified its status as a crypto hub with the approval of spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs) applications by several issuers on April 15. The Securities and Futures Commission (SFC), Hong Kong’s primary financial regulator, has not yet released an official statement regarding this development. The SFC has not responded to requests for comment at this time.
China Asset Management is one of the issuers that received regulatory approval for virtual asset management services in Hong Kong. This approval paves the way for the offering of Spot Bitcoin and Ethereum products. China Asset Management plans to launch these ETF products in collaboration with OSL Digital Securities, with BOC International Prudential Trusteeship selected as the custodian.
In addition to China Asset Management, Bosera Capital and Harvest Global Investments also announced approval of their applications for Bitcoin and Ethereum spot ETFs. However, these announcements have been deleted as of press time.
Market observers believe that the approval of these crypto ETFs will attract new investments to the region and revolutionize the market by providing a more efficient and less risky way of managing assets through the in-kind creation model.
This approval further cements Hong Kong as a leading crypto hub in Asia. The region has received praise from the crypto industry over the past year for its pro-crypto regulatory approach. Cathie Wood, CEO of Ark Invest, commended Hong Kong for its robust pro-crypto regulatory framework, highlighting the country’s encouragement of innovative technology and entrepreneurs. Wood noted that Hong Kong’s system of investment and collaboration with the government serves as a good model.
As the US continues to deliberate on the approval of Ethereum ETFs, Hong Kong’s approval of Bitcoin and Ethereum ETFs underscores its position as a progressive and forward-thinking hub for cryptocurrency investments.
