The Securities and Futures Commission (SFC) in Hong Kong has approved the first spot Bitcoin and Ethereum exchange-traded funds (ETFs). This approval has been confirmed through announcements made by various companies including China Asset Management Co. (China AMC), Harvest Global Investments, Bosera International, and HashKey Capital. China AMC’s Hong Kong subsidiary has been granted the rights to provide digital asset management services to investors and plans to launch ETF products linked to spot Bitcoin and Ethereum. The firm will be partnering with OSL Digital Securities and Bank of China International-Prudential Trustee Limited to introduce the ETFs.
Harvest Global Investments has also received in-principle approval from the SFC for two spot crypto ETFs in collaboration with OSL. The company aims to address issues such as high margin requirements, price premiums, and losses from rolling positions through these new products, resulting in a more accurate reflection of the immediate value of Bitcoin. Additionally, Bosera International and HashKey Capital have also been given the green light to offer Bitcoin and Ethereum ETFs after announcing their strategic cooperation during the 2024 Hong Kong Web3 Festival.
Following the approvals, Bitcoin and Ethereum prices have responded positively in the market. Bitcoin’s price has rebounded and is currently trading at $66,321, up by 2.4% from yesterday, while Ethereum’s price has also increased to $3,250 at the time of writing, up by 5.2% within the past 24 hours. These developments indicate a strong market response to the approval of the first spot Bitcoin and Ethereum ETFs in Hong Kong, with investors showing confidence in the digital asset market.
The introduction of spot Bitcoin and Ethereum ETFs in Hong Kong is expected to bring several benefits for investors and the digital asset market as a whole. These ETFs could help address issues such as high margin requirements, price premiums, and losses from rolling positions, providing a more accurate reflection of the immediate value of Bitcoin and Ethereum. By partnering with reputable digital asset platforms and custodians, companies like China AMC, Harvest Global Investments, Bosera International, and HashKey Capital are poised to offer investors a new way to access and invest in cryptocurrencies.
The approval of the first spot Bitcoin and Ethereum ETFs in Hong Kong marks a significant milestone for the digital asset industry in the region. It demonstrates a growing acceptance and recognition of cryptocurrencies as legitimate investment assets by regulatory authorities. The positive market response to these approvals also indicates a strong demand for investment products linked to cryptocurrencies among investors in Hong Kong and beyond. As these ETFs are launched and become available to investors, they are expected to further fuel the growth and adoption of cryptocurrencies in the region and potentially set a precedent for similar products in other jurisdictions.
