Explore the Bitcoin price surge after the approval by Hong Kong for Bitcoin and Ethereum ETF
According to money managers, Hong Kong became the first Asian city to approve its first bitcoin and ether ETFs conditionally on Monday. Harvest Fund Management and Bosera Asset Management released statements indicating that the Hong Kong branches of the two offshore Chinese asset managers had obtained provisional authorization to introduce the initial bitcoin and ether spot exchange-traded funds (ETFs). Hong Kong will be the first Asian nation to legalize virtual asset spots.
The Hong Kong branch of China Asset Management (CAMC) declared on Monday that spot ETFs for Bitcoin and Ether are developing and that Hong Kong CAMC has been given regulatory clearance to offer virtual asset management services.
The Securities and Futures Commission (SFC) responded to Reuters’ questions by confirming that it issues conditional authorization letters to ETF applications if they generally meet its requirements. The SFC does so on a case-by-case basis, subject to a variety of conditions, such as fee payments, documentation filing, and HKEX listing approval.
The regulator remained silent regarding the specifics of virtual asset spot ETFs. Only three months have passed since the United States introduced its first exchange-traded fund (ETF) to follow spot bitcoin prices. The net inflows into such ETFs have already totaled almost $12 billion. Although Bitcoin is illegal on China’s mainland, Hong Kong has been pushing itself as a worldwide hub for digital assets in an effort to increase its appeal as a financial hub.
Bosera Asset Management (International) released a statement saying, “The introduction of the virtual asset spot ETFs not only provides investors with new asset allocation opportunities but also reinforces Hong Kong’s status as an international financial center and a hub for virtual assets.”
Bosera and HashKey Capital, located in Hong Kong, will collaborate to commercialize the product. According to Bosera, virtual asset spot ETFs in Hong Kong will launch an “in-kind” subscription system that enables investors to purchase ETF shares with Bitcoin or ether immediately.
Hong Kong’s conditional approval will support Harvest Global’s mission of fostering industry innovation and meeting the diverse needs of investors, said Han Tongli, CEO of Harvest Global Investments. In recent years, China’s financial institutions have been increasingly interested in investing in crypto assets, especially after China’s equity markets experienced a period of decline.
