Hong Kong has greenlit several spot bitcoin and ether exchange-traded funds (ETFs) in a significant move as the region positions itself as a burgeoning crypto hub.
China Asset Management, a prominent Chinese asset manager, announced that its Hong Kong unit has received provisional approval from the Hong Kong Securities and Futures Commission (SFC) to offer retail asset management services related to spot crypto ETFs. Collaborating with OSL and BOCI International, China Asset Management plans to launch spot bitcoin and ether ETFs, with OSL serving as the primary virtual asset trading and sub-custodian partner.
Similarly, Harvest Global Investments has secured in-principle approval from the SFC for its two spot crypto ETFs. These ETFs will be issued in partnership with OSL, addressing concerns such as high margin requirements. OSL’s robust infrastructure ensures a secure trading environment crucial for the ETFs’ operation, managing underlying assets with precision and reliability.
Bosera Asset Management, a Hong Kong subsidiary of a major Chinese asset manager, and HashKey Capital have also received conditional approval for two spot crypto ETFs. The Bosera HashKey Bitcoin ETF and the Bosera HashKey Ether ETF will enable investors to subscribe for ETF shares using bitcoin and ether directly.
“The introduction of Virtual Asset Spot ETFs not only offers investors new asset allocation opportunities but also strengthens Hong Kong’s position as an international financial center and a hub for virtual assets,” stated Bosera.
In contrast to mainland China’s crackdown on cryptocurrency trading and mining, Hong Kong has embraced crypto firms, launching a licensing regime for crypto trading platforms in June 2023. Two platforms, HashKey and OSL, have received licenses, fostering a conducive environment for crypto innovation and investment in the region.