Anticipated Approval: Hong Kong is on the verge of granting approval for new exchange-traded funds (ETFs) that will directly invest in Bitcoin and Ether, the two leading cryptocurrencies. The approval is expected to come as early as Monday, signifying a rapid development in the city’s financial sector.
The main players eagerly awaiting the regulatory green light are Harvest Fund Management and the Bosera-HashKey partnership. These two major asset management firms are at the forefront of this transformative move. Unlike traditional ETFs, these pioneering spot-crypto ETFs will directly hold the underlying cryptocurrencies, providing investors with more direct exposure to the price movements of digital assets.
Hong Kong is making its move into the crypto world! Approval for #Bitcoin and #Ether ETFs is expected by Monday (April 15, 2024).
According to sources, the driving forces behind this approval are the Chinese titans Harvest Fund ($230 Billion Powerhouse) and China Southern Fund…
pic.twitter.com/vzdVf2sLBl — Marcel Knobloch aka Collin Brown (@CollinBrownXRP) April 12, 2024
This strategic decision by Hong Kong’s Securities and Futures Commission (SFC) is part of a broader initiative to solidify the city’s position as a regional hub for digital assets. It follows the implementation of a comprehensive regulatory regime for virtual-asset service providers last year, which has already attracted platforms like HashKey Group and OSL Digital Securities.
Hong Kong faces competition from other major cities like Singapore and Dubai in its bid to become a hub for digital asset enterprises. These cities are also offering favorable regulatory environments and robust infrastructures to attract crypto entrepreneurs and investments.
The launch of similar spot-crypto ETFs in the United States earlier this year had a significant impact on the market, leading to increased crypto activities. For example, BlackRock’s iShares Bitcoin Trust garnered over $15 billion in net inflows within just three months of its launch, highlighting the strong market demand for such products.
The implications of Hong Kong’s imminent approval extend beyond immediate market dynamics. It is part of a broader strategy to restore investor confidence and revitalize the city’s global business appeal, especially after setbacks like the JPEX fraud incident last year. By introducing regulated and innovative financial products, Hong Kong aims to reclaim its position as a premier global financial hub.
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