Hong Kong regulators gave the thumbs-up for spot bitcoin and ether exchange-traded funds (ETFs) on Monday, according to asset managers. This follows similar moves in the U.S. to introduce these products.
Bitcoin’s price went up by around 3% at 7:11 a.m. ET, bouncing back after a tough weekend.
The Securities and Futures Commission (SFC) of Hong Kong approved three ETF providers.
ChinaAMC announced it got the green light to offer “virtual asset management services” and is working hard to develop spot bitcoin and ether ETFs. OSL Digital Securities will act as a custodian for ChinaAMC.
Harvest Global and Bosera International also got SFC’s approval for bitcoin and ether ETFs, as per the companies.
CNBC couldn’t reach the Hong Kong SFC for comment immediately.
While these asset managers got the nod for ETFs, they haven’t launched them yet.
Crypto trading is mostly banned in mainland China after a crackdown in 2021. But Hong Kong is slowly aiming to become a regulated crypto center to compete with places like Dubai and Singapore. It’s unclear if mainland Chinese investors can invest in cryptocurrencies via these ETFs.
Hong Kong’s move comes after U.S. securities regulators gave the green light for spot bitcoin ETFs, attracting billions of dollars.
A bitcoin ETF lets investors benefit from the asset’s price changes without owning the actual cryptocurrency. Many believe ETFs will encourage more traditional investors to join the crypto market.
The U.S. Securities and Exchange Commission hasn’t approved such a product yet following which Hong Kong could be one of the first places to approve an ether ETF. Asset managers told CNBC last week they don’t expect it to happen soon.
