Hong Kong further solidified its status as a crypto hub, with several issuers reporting approval of their spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs) applications on April 15.
However, Hong Kong’s foremost financial regulator, the Securities and Futures Commission (SFC), has yet to release an official statement on this development.
SFC has not responded to CryptoSlate’s request for comment at press time.
Spot Bitcoin ETFs
China Asset Management, one of the issuers, disclosed that its Hong Kong entity received regulatory approval to offer virtual asset management services, paving the way for Spot Bitcoin and Ethereum products.
Its statement reads:
“China Asset Management (Hong Kong) has received approval from the Hong Kong Securities and Futures Commission to provide virtual asset management services to investors. It now plans to issue ETF products that can invest in spot Bitcoin and spot Ethereum.”
China Asset Management aims to launch the products by teaming up with OSL Digital Securities. BOC International Prudential Trusteeship has been selected as its custodian.
Similarly, Bosera Capital and Harvest Global Investments announced that the financial regulator has approved their applications for Bitcoin and Ethereum spot ETFs. However, these announcements have been deleted as of press time.
Meanwhile, market observers believe that the approved crypto ETFs would attract fresh investments to the region and revolutionize the market by providing a more efficient and less risky way of managing assets through the in-kind creation model.
Crypto hub status
The reported approval of these crypto ETFs further positions Hong Kong as a pioneer crypto hub within Asia.
Over the past year, Hong Kong has attracted significant attention and praise from the crypto industry due to its pro-crypto regulatory approach.
Cathie Wood, CEO of Ark Invest, recently lauded the country’s robust pro-crypto regulatory framework, saying:
“Hong Kong is the ‘leader’ in terms of policy. It strongly encourages the development of innovative technology and entrepreneurs. The system of investment and mutual cooperation with the government has given the institution a good model.”
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