Hong Kong Gives Greenlights for its First Bitcoin, Ethereum Spot ETFs

Hong Kong, on Monday, approved several spot Bitcoin and Ethereum exchange-traded funds(ETFs), the latest development in its quest to become a major cryptocurrency hub. The Hong Kong Securities and Futures Commission (SFC) officially granted these approvals to China Asset Management (Hong Kong), Bosera Capital, and HashKey Capital Limited, as well as an in-principle approval for Harvest Global Investments.

“The introduction of the Virtual Asset Spot ETFs not only provides investors with new asset allocation opportunities but also reinforces Hong Kong’s status as an international financial center and a hub for virtual assets,” Bosera said.

According to a press release from China Asset Management’s Hong Kong unit, the approval comes on the back of a collaboration with OSL Digital Securities Limited, the maiden digital asset platform licensed and insured by the SFC and BOCI International. 

The latest development will see these platforms provide retail asset management services with direct cryptocurrency subscriptions to their customers, a major step in tackling market challenges including excessive margin requirements and price premiums.

Also in the limelight, on the heels of the latest announcement is Harvest Global Investments, which has received an in-principle approval for two major digital asset spot ETFs.  Tongli Han, CEO and CIO of Harvest Global Investments, speaking after the latest development stated; “This in-principle approval for Harvest Global Investments’ products in two major digital asset spot ETFs not only underscores Hong Kong’s competitive edge in the digital asset space, but also demonstrates our unrelenting pursuit of promoting innovation in the industry and meeting diversified investor needs.”

SFC’s latest approvals highlight the country’s progressive regulatory framework which strives to legally and securely incorporate digital assets into the city’s financial ecosystem. The launch of these ETFs is anticipated to give institutional and ordinary investors in the region access to a regulated, cutting-edge investing option which will further strengthen the development of the crypto space in the region.

SFC’s decision follows speculation last week over the potential acceptance of these ETFs and comes just three months after the first ETFs were launched in the United States to track spot Bitcoin. The news also seems to have arrived at a very crucial time, providing a much-needed boost to the price of Bitcoin and Ethereum. 


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