Hong Kong Green Lights See Bitcoin and Ethereum ETFs As Crypto Markets Bounce

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With spot cryptocurrency ETFs in vogue, Hong Kong has joined the trend by giving approval to several Bitcoin and Ethereum spot ETFs on Monday.

Hong Kong Welcomes Spot Bitcoin, Ethereum ETFs

This latest move reflects the city-state's ongoing efforts to establish itself as a leading crypto hub in the region.

China Asset Management, a leading asset manager, announced that its Hong Kong division has been given the green light by the Hong Kong Securities and Futures Commission (SFC) to offer retail asset management services related to spot crypto ETFs. The next step is to launch a Bitcoin and Ethereum ETF in partnership with OSL and BOCI International.

Harvest Global Investments also revealed that two of its spot crypto ETFs have received initial approval from the SFC. The company has teamed up with OSL to launch this ETF to address concerns such as exorbitant margin requirements.

Hong Kong regulators have also approved Bosera Asset Management, the Hong Kong-based unit of a major Chinese asset manager, and HashKey Capital to jointly manage two spot crypto ETFs.

The SFC approval comes less than a week before the highly anticipated Bitcoin halving event, sparking further optimism in the cryptocurrency market.

Hong Kong's Crypto Ambitions

Hong Kong has been competing fiercely with Singapore and Dubai to position itself as a hub for cryptocurrency companies. The city-state introduced a regulatory framework for virtual asset service providers in June 2023 and has since given approval to platforms operated by HashKey Group and OSL Digital Securities.

However, a setback came in the form of JPEX last year, which was an unlicensed crypto exchange that sparked a fraud of nearly HK$1.6 billion (worth about $200 million).