Hong Kong Regulator Approves Spot Bitcoin and Ether ETFs
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On April 15, the Hong Kong Securities and Futures Commission (SFC) approved the first batch of spot Bitcoin and Ethereum exchange-traded funds (ETFs), a major leap that makes Hong Kong the first Asian country to embrace both crypto ETFs as a publicly traded financial asset.
Hong Kong Regulator Greenlights Spot Ether ETFs As US Delays
According to local news media, Weixin, China Asset Management, Hashkey Capital Limited, and Bosera Capital had gotten the approvals from the Hong Kong regulator to launch spot Bitcoin ETFs and Ethereum ETFs. These firms plan to issue the ETFs in collaboration with OSL and BOCI International.
OSL is a digital asset platform based in Hong Kong that provides brokerage, custody, exchange, and software-as-a-service (SaaS) services for institutional clients and professional investors.
BOCI International, on the other hand, is a subsidiary of Bank of China International Holdings Limited (BOCI), one of the largest and most prominent investment banks in China.
Harvest Global Investments has also received in-principle approval from the SFC for two spot crypto ETFs. The firm intends to issue these ETFs in collaboration with OSL, with a focus on addressing issues such as excessively high margin requirements.
This latest development in Hong Kong’s ETF market comes amidst a recent market crash triggered by the Israel-Iran conflict, which saw the BTC price plummet from $70,000 on April 12 to $61,000 on April 13.
I’m so scared right now i’m literally shaking and sweating under my bed sheets. Bitcoin is down 10% from all time highs I literally never expected this I am calling off work on Monday because i’m deeply depressed I thought I would be a millionaire because the halving is next week…
— Tyler Strejilevich (@TylerSCrypto) April 13, 2024
However, despite this decline, Bitcoin has shown resilience by rising to 3% in the past 24 hours and reclaiming the $66,000 price level, indicating some level of market stability.
Hong Kong’s approval of spot Bitcoin ETFs positions the first in Asia to do so. This came after the US Securities and Exchange Commission’s (SEC) historic decision to approve 11 spot Bitcoin ETFs in the US in January 2024, although it still delays the decision on approving options trading for the products.
However, the US is yet to give Ethereum ETFs approval, with analysts suggesting that the SEC may reject spot Ethereum ETFs applications in May 2024.
BTC and Ether Tipped to Hit Bullish Trajectory Amidst China Ban
Cryptocurrencies are currently banned in Mainland China, contrasting with its neighboring region of Hong Kong, which has been attracting crypto firms.
In June 2023, the Hong Kong regulator initiated a licensing regime for crypto trading platforms, allowing licensed exchanges to offer retail trading services. Two platforms, HashKey and OSL, have been granted licenses so far.
The approval of spot Bitcoin and Ether ETFs in the Asian country could potentially mirror the impact of the US spot BTC ETFs, which helped propel Bitcoin to a new all-time high.
According to CoinCodex forecasts, Bitcoin is expected to reclaim its all-time high later in April and continue on a bullish trajectory, with a predicted price of $85,906 on May 13, 2024, representing a growth of about 32%.
As Bitcoin halving approaches, there is anticipation of another bullish rally in the crypto market. This is because the approval of spot crypto ETFs in Hong Kong, combined with Bitcoin’s halving, could potentially drive both Bitcoin and Ethereum to new all-time highs.
