[NEWS] Hong Kong approves Bitcoin and Ethereum spot ETF, the first in Asia

On the 15th, the Hong Kong Securities and Futures Commission (SFC) approved the listing of a Bitcoin spot ETF and an Ethereum spot ETF. This is the first time that a cryptocurrency spot ETF has been approved in Asia.

The Hong Kong subsidiary of China Asset Management, the largest asset management company in mainland China, has received approval for the cryptocurrency spot ETF. China Asset Management announced that it has received approval from the SFC to list the Bitcoin spot ETF and Ethereum spot ETF that it had applied for some time.

Founded in 2008, China Asset Management Hong Kong has a total managed assets of over $266 billion (approximately 41 trillion yen) as of December 31, 2023.

According to a statement from China Asset Management Hong Kong, the company will work with its lead partner OSL Digital Securities and custodian BOCI-Prudential Trustee to develop a Bitcoin spot ETF and an Ethereum spot ETF.

The SFC has also conditionally approved the Hong Kong branches of Harvest Fund Management and Bosera Asset Management to launch Bitcoin spot ETFs.

The SFC said it would issue a conditional letter of approval if the ETF application met the broad requirements, including payment of fees, submission of documents, and approval for listing on the Hong Kong Stock Exchange (HKEX).

"The introduction of a crypto spot ETF will not only provide investors with new asset allocation opportunities, but will also strengthen Hong Kong's position as an international financial center and crypto hub," Vosera Asset Management said in a statement. "The Hong Kong crypto spot ETF will introduce a spot purchase mechanism that allows investors to purchase the ETF directly using Bitcoin or Ethereum."

Hong Kong's approval of a Bitcoin spot ETF comes about three months after the approval of a Bitcoin spot ETF in the United States. Although crypto assets themselves are prohibited in mainland China, the aim is to meet the needs of investors by providing related products in Hong Kong, which is active in the Web 3.0 field. It is also likely to accelerate Hong Kong's goal of becoming a "Web 3.0 hub."

Approval of Ethereum Spot ETF attracts attention

The approval of an Ethereum spot ETF is attracting attention in this approval. Currently, the SEC (US Securities and Exchange Commission) is discussing whether Ethereum should be treated as a security, which is an obstacle to the approval of an Ethereum spot ETF. However, it cannot be denied that the approval in Hong Kong this time may have some influence on future approval decisions.

Expectations for price increases for Bitcoin, Ethereum, etc. due to the inflow of Chinese money are also expected to increase in the future, and depending on the trend, other countries may follow suit.

Reference: Announcement
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