Hong Kong Announces Its Approval for Bitcoin and ETFs
Hong Kong/ Digital/ Updates

Hong Kong Approves First Bitcoin and Ether Exchange Traded Funds (ETFs)

In partnership with:

Hong Kong Approves First Bitcoin and Ether Exchange Traded Funds ET Fs

Hong Kong has taken a significant step towards embracing cryptocurrencies as mainstream investment tools by conditionally approving its first spot bitcoin and ether exchange-traded funds (ETFs) on Monday. This initiative follows the implementation of a regulatory framework for virtual asset service providers in the region last year.

This move positions the city to potentially become Asia's pioneer in recognizing cryptocurrencies as legitimate investment assets. Hong Kong, in competition with financial hubs like Singapore and Dubai, aims to establish itself as a leading centre for digital asset firms.

At least three offshore Chinese asset managers are set to launch virtual asset spot ETFs in the near future.

The Hong Kong units of Harvest Fund Management and Bosera Asset Management have both announced that they have received conditional approvals from the Hong Kong Securities and Futures Commission (SFC) to introduce the ETFs. Additionally, OSL Digital Securities Ltd. stated that it would offer custodial services for Bitcoin and Ether products from China Asset Management and Harvest, among others.

According to Reuters, the SFC issues conditional authorization letters to ETF applications that generally meet its requirements, subject to fulfilling various conditions such as fee payments, document filings, and approval from the Hong Kong Stock Exchange (HKEX) for listing.

Bloomberg reported a positive market response to the news, with Bitcoin surging as much as 4.3% to approximately US$66,629, while Ether experienced a 6.1% increase to reach US$3,257. This demonstrates growing investor confidence and interest in cryptocurrencies as regulated investment options.

The conditional approval of Bitcoin and Ether ETFs in Hong Kong marks a significant milestone in the integration of cryptocurrencies into traditional financial systems, potentially opening doors for broader adoption and investment opportunities in the region.

Get the latest curated content with The Beat Asia's newsletters. Sign up now for a weekly dose of the best stories, events, and deals delivered straight to your inbox. Don't miss out! Click here to subscribe.

This Week's Events In Hong Kong View more

Sign up to receive updates on what's going on in the city. Don't miss out on exciting events, news, and more. Sign up today!

By submitting your email, you agree to our Terms and Privacy Notice
Thank you for subscribing! Click here if you were not redirected.