Hong Kong approves its first bitcoin and ether spot ETFs

The Hong Kong regulator approved 4 bitcoin and ether spot ETF files this Monday, in a strategy to become a global crypto hub.

This Monday, April 15, the Securities and Futures Commission of Hong Kong (the Hong Kong regulator) approved four applications for bitcoin and ether spot ETFs. One of the largest Hong Kong asset managers, China Asset Management, has received authorization to launch this type of financial product, as well as Harvest Global Investments, Bosera Asset Management and HashKey Capital, reports The Block.

As a reminder, an ETF (or Exchange Traded Funds) is an index fund trading on a stock exchange which follows the evolution of a stock index (or one or more financial or physical assets, such as gold) by replicating the increase as well as the fall in the price of this index (or these assets).

Crypto hub

The introduction of these ETFs “not only provides investors with new asset allocation opportunities, but also reinforces Hong Kong’s status as an international financial center and crypto hub”, underlines Bosera Asset Management in a press release .

This approval comes three months after the first spot bitcoin ETF authorizations in the United States. It is part of Hong Kong’s general strategy to become a global crypto hub, unlike its Chinese neighbor. As a reminder, last June, Hong Kong introduced a regulatory framework allowing crypto exchanges to obtain licenses to operate there.

As a reminder, on January 10, the American stock market watchdog (the SEC) has authorized 11 spot bitcoin ETFs, offered in particular by asset managers like Blackrock and Fidelity. Unlike the Hong Kong regulator, the SEC is expected to rule on the ether spot ETF files in May. To date, several opinions differ: on the one hand, Jan van Eck, the boss of Vaneck, thinks that his ether spot ETF application “will probably be rejected”, while Larry Fink, the boss of Blackrock, is much more confident.