Hong Kong Approves Spot Bitcoin and Ethereum ETFs, Setting Global Precedent

The Hong Kong Securities and Futures Commission (SFC) has made history by approving the launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs), making Hong Kong the first jurisdiction to offer a spot Ethereum ETF. Leading financial institutions such as China Asset Management, Bosera Capital, and HashKey Capital Limited have been given the green light to introduce these innovative investment products to the market. Harvest Global Investments has also received preliminary approval to create additional Bitcoin and Ethereum digital asset spot ETFs. Despite the positive developments in Hong Kong, mainland China’s ban on cryptocurrencies means that access to these ETFs is highly unlikely for Chinese investors. However, the Hong Kong Monetary Authority (HKMA) has been actively promoting the development of digital currencies, positioning the city as a potential hub for cryptocurrency innovation and investment in the region.