Hong Kong has approved several spot bitcoin and ether exchange-traded funds (ETFs) in contrast the the Chinese mainland’s broader crackdown on cryptocurrency trading and mining and marking a significant step for Hong Kong to establish itself as a major player in the crypto market:
Several asset managers, including China Asset Management, Harvest Global, Bosera Asset Management, and HashKey Capital, have received approval from the Hong Kong Securities and Futures Commission (SFC) for spot bitcoin and ether ETFs.
These asset managers are collaborating with various partners to launch the ETFs. China Asset Management is working with OSL and BOCI International, while Harvest Global is collaborating with OSL. Bosera Asset Management and HashKey Capital are jointly managing their ETFs.
OSL plays a crucial role as a trading and sub-custodian partner for China Asset Management and Harvest Global, ensuring a secure trading environment and managing underlying assets effectively.
Bosera Asset Management and HashKey Capital have received conditional approval, though the specifics of these conditions are not immediately clear.
The approved ETFs will allow investors to subscribe for shares using bitcoin and ether directly, providing new asset allocation opportunities.
Unlike mainland China’s crackdown on crypto trading and mining, Hong Kong has been welcoming towards crypto firms. It initiated a crypto licensing regime for trading platforms in June 2023, granting licenses to platforms like HashKey and OSL.
Many Crypto investors believe that spot ether ETFs could be particularly influential, as they offer exposure to Ethereum without the availability of related stocks. This approval positions Hong Kong ahead of the U.S. in authorising spot ether ETFs, potentially attracting global investor interest.
Patricia Ho, general counsel of Scroll, an Ethereum Layer 2 network, suggests that Hong Kong is jumping ahead of the U.S. as the first global financial hub to authorise spot ether ETFs. “I believe this will unlock pent-up global investor interest and drive more funds to set up to issue Hong Kong Ether spot ETFs.”
Overall, the approval of these ETFs underscores Hong Kong’s aspirations to become a leading crypto hub and could have significant implications for the crypto market, particularly regarding investor access to digital assets like bitcoin and ether.
(Source: The Block)