Hong Kong Regulators Approve Launch of Spot Bitcoin and Ethereum ETFs
Hong Kong regulators have given the green light for the launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs) today, marking a significant milestone in the region’s crypto market. Fund managers such as China Asset Management (Hong Kong) Ltd, Bosera Asset Management (International) Co., and Harvest Fund Management have all received conditional approval from financial regulators in Hong Kong.
The decision by the Securities and Futures Commission of Hong Kong (SFC) to approve Bitcoin and Ethereum spot ETFs follows similar moves made earlier this year in the United States, making Hong Kong the second jurisdiction globally to introduce such products after the United States.
What sets the Hong Kong crypto ETFs apart is their comprehensiveness and investor-friendly features, offering both Bitcoin and Ethereum spot ETFs and permission for in-kind redemptions. In contrast, Bitcoin ETFs approved by U.S. regulators only support share redemption that turns the underlying crypto into cash for redemption.
China Asset Management is partnering with Hong Kong crypto exchange OSL for their ETF product, with China CITIC International serving as the custodian. Harvest Management has also selected OSL as its primary virtual asset trading platform and custodial partner, while Bosera International is collaborating with Hong Kong crypto company HashKey Capital for joint issuance and management.
The approval of Bitcoin and Ethereum spot ETFs has the potential to expand investment channels, reduce regulatory hurdles, and further incentivize the migration of traditional capital into the crypto space in Hong Kong. This move is expected to inject new vitality into the development of Hong Kong’s Web3 industry and bolster its reputation as an open player in the global crypto landscape.
