Hong Kong Securities and Futures Commission (SFC) has sent its approval for the first wave of Asian Bitcoin Spot Exchange-Traded Funds (ETFs) to the applicant companies on Monday. The move puts the city at the forefront of crypto adoption in the Asian financial market.
Hong Kong’s decision to greenlight Bitcoin and Ethereum spot ETFs comes three months after the United States approved several Bitcoin spot ETF applications. With Hong Kong joining the US in the spot ETF market, more institutional investors will be able to explore investment opportunities in the crypto industry.
Hong Kong Receives Approval to Offer Bitcoin and Ether ETFs
As reported on Monday, China Asset Management, a leading financial company in Hong Kong, revealed that it received direct approval to offer digital asset management services for cryptocurrencies. It now plans to launch bitcoin and ether ETF products to investors.
The Hong Kong subsidiaries of other asset management companies, such as Bosera Capital, Hashkey Capital Limited, and Harvest Global Investments, have received in-principle conditional approvals to launch retail and institutional Bitcoin and Ether ETFs in the city.
Following the approval on Monday, the firms are working to introduce the ETFs by month end.
In a strategic move, China Asset Management has partnered with OSL Digital Securities, a licensed virtual asset platform, to be its first digital asset trading and sub-custodian partner. The collaboration strengthens China Asset Management’s position in digital asset management services.
If the Hong Kong ETF market grows like that of the U.S. market, the ETF approval will increase Hong Kong’s position as an international focal point for financial investments.
Bitcoin Reacts
Following the Hong Kong approval on Monday, four days before Bitcoin Halving, the leading crypto has risen as the new market week starts with a bullish candle, changing the effects of the announced Israel attack on the digital asset market.
At press time, bitcoin’s market capitalization increased by 3%, with the asset trading at $66,500. Many investors remain bullish on bitcoin and other cryptocurrencies, expecting a significant price change after the bitcoin halving event scheduled for 19 April.
