Key takeaways:
- In Hong Kong, applications for Exchange Traded Funds (ETFs) specializing in Bitcoin (BTC) and Ethereum (ETH) have been approved.
- Hong Kong’s cryptocurrency trading platform licensing program was formally launched in June 2023, enabling licensed exchanges to provide retail trading services.
In Hong Kong, applications for Exchange Traded Funds (ETFs) specializing in Bitcoin (BTC) and Ethereum (ETH) have been approved.
This region is the second to do so in 2024, following the Securities and Exchange Commission’s (SEC) landmark decision to permit 11 spot BTC ETFs in the US.
Eleven Bitcoin ETFs have received US approval; however, an Ethereum ETF has not yet received such approval. Later this year, according to some analysts, the US might approve a spot Ethereum ETF.
The market for cryptocurrencies might see another upswing in response to the approval of spot ETH and BTC ETFs. The fact that Bitcoin reached a new all-time high earlier this year was largely due to the US spot BTC ETFs.
A significant Chinese asset manager, China Asset Management, announced that the Hong Kong Securities and Futures Commission (SFC) had given its Hong Kong unit permission in principle to provide retail asset management services for spot crypto ETFs.
It intends to work with BOCI International and OSL to launch spot ether and bitcoin ETFs. OSL said that it will serve as China Asset Management’s “first virtual asset trading and sub-custodian partner” for future ETFs.
The SFC has also given its in-principle approval to Harvest Global Investments’ two spot cryptocurrency exchange-traded funds, the company announced in a statement. It further stated that the two ETFs will be released in association with OSL, potentially resolving problems such as unduly large margin requirements. In a statement, OSL stated:
“In this collaboration, OSL leverages its robust infrastructure to provide a secure trading environment essential for the ETF’s operation, managing the underlying assets with precision and reliability,”
Hong Kong’s cryptocurrency trading platform licensing program was formally launched in June 2023, enabling licensed exchanges to provide retail trading services.
Early in March, a surge in BTC to $73,737 was fueled by a rise in inflows into spot BTC ETFs. Since Bitcoin reached a new all-time high due to US spot BTC ETFs, there’s a good chance that the Hong Kong approvals will cause a similar pattern to emerge.
The upcoming halving of Bitcoin could lead to yet another significant surge in the cryptocurrency market. Because of the Hong Kong spot ETFs and the halving of BTC later this month, both ETH and BTC may reach new all-time highs.
