Hong Kong Approves Bitcoin and Ethereum ETFs, Market Reaction
How Hong Kong’s move is seen as a better standing point compared to the SEC’s. The Securities and Futures Commission, the Hong Kong market regulator, has followed the US steps by approving Bitcoin and Ethereum-tied exchange-traded funds (ETFs).
At least three Chinese asset managers – ChinaAMC (HK), Bosera, and Harvest Fund – have posted on the social media platform WeChat (Weixin) that they had been approved to list spot Bitcoin and Ether ETFs in Hong Kong.
The announcement seems to have outpaced an official statement from the Securities and Futures Commission that has not commented on the ETF approval yet.
How Significant an Approval Is
Hong Kong’s preliminary approval of spot ether exchange-traded funds could give the region a competitive edge over the U.S. in the retail spot ETF market. In the latest interview for The Block, Gary Tiu, executive director at Hong Kong-based OSL Securities.
OSL was approved as the first sub-custodian partner for ChinaAMC’s BTC and ETH ETFs. The same outlook is shared by Angel Ang, a former regulator at the Monetary Authority of Singapore and senior policy advisor at blockchain intelligence firm TRM Labs. He exclusively commented for The Block:
“Hong Kong’s approval of the spot ether ETFs comes ahead of a US decision and is a significant milestone in Hong Kong’s journey to become a leading crypto hub. “With fewer alternatives for Ethereum exposure, we might see the ether ETFs attract more investor interest.”
The Hong Kong approval came amidst the SEC’s scrutiny of the Ethereum Foundation, which seems to halt the process of allowing Ether ETFs to be listed.
Read Also: Is SEC Halting the Ethereum ETF?
SFC’s ETF approval marks the global trend for crypto’s institutional adoption, accelerated this year. Simultaneously, Ukraine released its first stablecoin UAHg,which has already been used by WhiteBIT to introduce fostering activities for the users.The ones also include a pre-halving contest, set to highlight the significance of the event.
