Hong Kong is almost ready to approve its first Bitcoin and Ethereum Exchange-Traded Funds (ETFs). This will be a significant move forward for the region’s finances.
Bloomberg reports that government approval for these ETFs could be given as early as April 15th. If this happens, Hong Kong will be the first place in Asia to have operational ETFs for these top cryptocurrencies.A Chinese company called Harvest Fund Management Co. has a foreign branch, and Bosera Asset Management (foreign) Co. and HashKey Capital are working together on this project.
It is expected that these groups will be among the first to get approval for their spot crypto ETFs. But final approval from the Securities and Futures Commission (SFC) and final trading agreements with the Hong Kong Exchanges & Clearing Ltd. are still not in place.
Bitcoin Spurs Hong Kong’s ETF Launches
Both Harvest Fund Management Co. and the Bosera-HashKey Capital partnership are getting ready to start their ETFs by the end of the month, as long as these last regulatory steps are taken. The SFC recently gave Harvest and China Asset Management the go-ahead to handle funds related to virtual assets. This move comes after that.
After getting approval from the Securities and Exchange Commission (SEC) in January, spot Bitcoin ETFs became very popular in the U.S., and now they have over $59 billion in assets. This inflow greatly increased Bitcoin’s value, which reached an all-time high in March. Now that Hong Kong might join the ETF game, the market could react in a similar way in Asia’s financial hub.
Also, the London Stock Exchange might start trading Bitcoin and Ethereum exchange-traded notes (ETNs) in May. These would work the same way as ETFs. These changes are meant to make investing in cryptocurrencies easier for big companies by giving them access to the market without having to deal with the hassles of buying and storing cryptocurrencies directly.
