Hong Kong has given its official approval for the first-ever spot-based Bitcoin and Ethereum exchange-traded funds (ETFs). These ETFs, managed by Harvest Global Investments, China Asset Management, and a consortium of Bosera Asset Management and HashKey Capital, are expected to establish Hong Kong as a leading digital asset hub in Asia. Notably, HashKey Exchange, the largest licensed virtual asset exchange in Hong Kong, has reported a trading volume of $4.8 billion, solidifying its position among the top 20 exchanges listed on Coingecko. The approval of these ETFs has sparked a potential “fee war” among ETF providers in Hong Kong, with Harvest Global Investments waiving management fees for the first six months to gain a competitive advantage. The cryptocurrency market has reacted positively to the news, and HashKey Exchange has already completed the first cryptocurrency subscription for the approved Bitcoin and Ethereum spot ETFs. These ETFs, set to begin trading on April 30, offer advantages such as cost and liquidity for both issuers and investors. In the US, spot Bitcoin ETFs have experienced significant trading activity, with a record $2.4 billion turnover in a single day. BTC has seen a 5.76% surge in the past week, reaching a price of $64,356. Overall, the approval of these ETFs in Hong Kong and the growing interest in the US market are contributing to the expansion and recognition of cryptocurrencies.
