Hong Kong has given the green light to various spot ETFs on Bitcoin and spot ETFs on Ethereum, managed by China Asset Management, Harvest Global, Bosera, and HashKey. The asset managers, at the moment, have not disclosed the launch schedule.
Let’s see below all the details.
Summary
Hong Kong opens the doors to crypto investment with spot Bitcoin ETF
Last week Hong Kong gave the green light to the requests for several spot exchange-traded funds (ETFs) on Bitcoin and Ethereum, as the region continues its race to become a regional hub for cryptocurrencies.
China Asset Management, one of the leading Chinese asset managers, has announced that its Hong Kong subsidiary has obtained preliminary acceptance from the Hong Kong Securities and Futures Commission.
This is in order to offer retail asset management services related to crypto spot ETFs. The company plans to launch spot ETFs on Bitcoin and Ethereum in collaboration with OSL and BOCI International.
OSL has confirmed to act as the “first virtual asset trading partner and sub-custodian” of China Asset Management for the upcoming ETFs.
Even the two spot crypto ETFs from Harvest Global Investments have received preliminary acceptance from the SFC, as stated by the company itself.
It is expected that these ETFs will be issued in collaboration with OSL, in order to effectively mitigate issues related to excessively high margin requirements.
OSL has guaranteed that it will provide a safe trading environment, managing the underlying assets with precision and reliability.
Hong Kong’s pro-crypto stance
Even Bosera Asset Management, a subsidiary of Hong Kong of a major Chinese asset manager, and HashKey Capital have confirmed that they have received conditional approval for two crypto spot ETFs that they will manage together.
However, it was not immediately clear what this “conditional approval” entails.
The two have declared their intention to launch a spot ETF on Bitcoin, called Bosera HashKey Bitcoin ETF, and a spot ETF on Ethereum, called Bosera HashKey Ether ETF.
Both funds will allow investors to subscribe to ETF shares using Bitcoin and Ethereum directly. At the moment, a precise launch date has not been communicated.
Bosera commented that the introduction of Virtual Asset Spot ETFs not only provides new opportunities for asset allocation to investors, but also strengthens Hong Kong’s status as an international financial center and hub for virtual assets.
Unlike mainland China, which has imposed restrictions on cryptocurrency trading and mining, Hong Kong welcomed cryptocurrency companies last year.
In June 2023, Hong Kong officially launched its licensing regime for cryptocurrency trading platforms, allowing two authorized platforms, HashKey and OSL, to offer retail trading services.
ETF on Ethereum: United States beaten
Adrian Wang, CEO of Metalpha, a digital asset company based in Asia, shared with The Block that Ethereum spot ETFs could soon become a benchmark in the industry.
Specifically, he stated the following:
“I believe that the Ethereum ETF could have a more significant impact than the Bitcoin ETF. Investors currently have several options to gain exposure to Bitcoin through mining-related stocks, but there are no stocks related to Ethereum yet.”
Angela Ang, former regulator at the Monetary Authority of Singapore and senior policy advisor at TRM Labs, highlighted that the approval of Ethereum ETFs in Hong Kong precedes that of the United States.
Therefore, representing an important milestone in Hong Kong’s journey to become a leading center in the cryptocurrency sector. He stated:
“With fewer exposure options to Ethereum, Ether ETFs are likely to generate more interest among investors.”
