As the slots for bitcoin and ether ETFs could be approved as early as this week, Hong Kong is set to become a major player in the cryptocurrency exchange-traded fund (ETF) market.
What happened: the move will make Hong Kong a rival to Singapore and Dubai in the race to become a major hub for #digital assets.
Bloomberg, citing "sources close to the matter," reported that international management company Harvest Fund Management, a partnership between Bosera Asset Management and HashKey Capital, is seeking approval from Hong Kong's Securities and Futures Commission (SFC) for spot ETFs. The report says they are leading the effort to get the SFC to do so.
Both companies are reportedly aiming to launch the ETFs by the end of this month, pending finalization of listing details.
The possibility of regulatory approval represents a significant shift for Hong Kong, which previously only allowed futures-based #cryptocurrency ETFs.
The existing products, CSOP #BTC Futures, CSOP Ether Futures and Samsung Bitcoin Futures, are worth about $170 million in total.
Why it's important: This news follows the successful launch of a spot bitcoin #ETF in the U. S. in January 2024. To date, these U. S. ETFs have attracted a staggering $59 billion in assets, fueling a surge in the cryptocurrency market.
Bitcoin BTC/USD hit an all-time high of $73,798 in mid-March, while #BTC ETH/USD is trading about 25% below its all-time high in 2021.
Hong Kong's entry into the cryptocurrency ETF market is consistent with its broader ambitions to become a hub for digital assets.
Hong Kong has already introduced regulations for virtual asset service providers and approved platforms managed by HashKey Group and OSL Digital Securities.
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However, Hong Kong's cryptocurrency ambitions were overshadowed by a high-profile fraud case involving an unauthorized JPEX exchange last year.
Despite this setback, authorities intend to embrace cryptocurrencies to strengthen Hong Kong's position as a global financial center.
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