Key Insights
- Hong Kong has approved the applications of several spot bitcoin and ether ETFs
- Major Chinese asset managers, including China Asset Management and Harvest Global Investments, have received in-principle approval
- The approval of these spot crypto ETFs is expected to provide investors with regulated access to bitcoin and ether
Hong Kong (MarketsXplora) – In a move that solidifies its ambitions to become a regional cryptocurrency hub, Hong Kong has approved the applications of several spot bitcoin and ether exchange-traded funds (ETFs), the Hong Kong Securities and Futures Commission (SFC) announced on Monday.
China Asset Management, a major Chinese asset manager, revealed that its Hong Kong unit has received in-principle approval from the SFC to offer retail asset management services related to spot crypto ETFs. The firm plans to collaborate with OSL and BOCI International to issue spot bitcoin and ether ETFs, with OSL serving as the “first virtual asset trading and sub-custodian partner” for China Asset Management’s upcoming ETFs.
Harvest Global Investments, another prominent asset manager, also had its two spot crypto ETFs receive in-principle approval from the SFC. Harvest Global Investments said it will work with OSL to address issues such as excessively high margin requirements, with OSL leveraging its “robust infrastructure to provide a secure trading environment essential for the ETF’s operation.”
Read also! Hong Kong to Launch Spot Bitcoin, Ether ETF Trading on April 30
The approval of these spot crypto ETFs has had an immediate impact on the cryptocurrency market, with bitcoin and ether prices rising on Monday afternoon in Asia. Bitcoin gained 2.8% to reach $66,732, while ether surged 5.2% to $3,462 in the past 24 hours as of 12:05 p.m. GMT, according to data from CoinMarketsCap.
The move comes after the cryptocurrencies briefly dipped over the weekend, with bitcoin falling below $62,000 and ether dropping below $3,000, in the wake of a drone attack by Iran on Israel.
Unlike the mainland Chinese government’s broader crackdown on cryptocurrency trading and mining, Hong Kong has taken a more welcoming approach towards the crypto industry. In June 2023, the city officially launched its crypto licensing regime for trading platforms, allowing licensed exchanges to offer retail trading services. Two platforms, HashKey and OSL, have already been granted licenses by Hong Kong.
“Hong Kong’s approval of these spot crypto ETFs is a significant step forward in the city’s quest to become a regional cryptocurrency hub,” said Stephen Ethan, a market analyst at MarketsXplora. “By providing investors with regulated access to bitcoin and ether through ETFs, Hong Kong is positioning itself as a premier destination for crypto-related investments and services.”
The approval of the spot crypto ETFs is expected to further boost Hong Kong’s appeal as a crypto-friendly jurisdiction, attracting more crypto firms and investments to the region. As the city continues to roll out its regulatory framework and foster a vibrant crypto ecosystem, it aims to solidify its status as a leading hub for digital asset innovation in Asia.