Hong Kong Approves Spot Bitcoin and Ethereum ETFs Amidst Market Slump
The Hong Kong Securities and Futures Commission (SFC) granted approval to several spot Bitcoin and Ethereum exchange-traded funds (ETF) applications on Monday. This development comes as Hong Kong continues its efforts to establish itself as a leading destination for crypto firms and investors.
Key points:
- The Hong Kong unit of China Asset Management has received approval to offer retail asset management services for spot crypto ETFs.
- Harvest Global Investments’ two crypto ETFs have also gotten preliminary approval from the SFC.
- Bosera Asset Management and HashKey Capital have received conditional approval for two spot crypto ETFs.
The approval of these spot crypto ETFs marks a significant jump from the broader crackdown on cryptocurrency trading and mining in mainland China.
Hong Kong, in contrast, has been actively welcoming crypto firms since last year. In June 2023, the region officially launched its crypto licensing regime for trading platforms, allowing licensed exchanges to offer retail trading services. HashKey and OSL are the two platforms for which Hong Kong has so far issued licenses.
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Hong Kong approves crypto spot ETFs amidst recent crash
Hong Kong’s recent approval of spot crypto ETFs comes amidst the recent crash triggered by the ongoing Israel-Iran war. Major altcoins saw significant dumps, with ETH even dropping below the $3,000 level. However, the market seems to be showing signs of relief now as Bitcoin has reclaimed the $66,000 level.
China Asset Management, a major Chinese asset manager, announced that its Hong Kong unit has secured approval from the SFC to offer retail asset management services related to spot crypto ETFs. The firm plans to issue spot Bitcoin and Ethereum ETFs in collaboration with OSL and BOCI International.
Similarly, Harvest Global Investments has received in-principle approval from the SFC for two spot crypto ETFs. The firm announced that it will issue the ETFs in collaboration with OSL, potentially addressing issues like excessively high margin requirements.
Bosera Asset Management, a Hong Kong unit of a major Chinese asset manager, and HashKey Capital have also received conditional approval for two spot crypto ETFs jointly managed by the pair.
Although the launch timeline for the Bosera HashKey Bitcoin ETF and the Bosera HashKey Ether ETF remains undisclosed, investors can expect to directly subscribe for ETF shares using Bitcoin and Ethereum.
