First spot Ethereum ETFs approved as Hong Kong green lights crypto ETFs

April 15, 2024 01:38 AM PDT | By Invezz

First spot Ethereum ETFs approved as Hong Kong green lights crypto ETFs — Image source: Invezz

Hong Kong approves several crypto ETFs

China Asset Management, a prominent player in the Chinese asset management sphere, intends to roll out spot Bitcoin and ether ETFs in partnership with OSL and BOCI International. OSL, in particular, will serve as the primary virtual asset trading and sub-custodian partner for China Asset Management in the forthcoming ETF ventures.

Similarly, Harvest Global Investments in collaboration with OSL has disclosed that its two spot crypto ETFs that obtained preliminary approval from the SFC aim at mitigating challenges like excessively high margin requirements. OSL highlighted its role in furnishing a secure trading environment and ensuring precision and reliability in managing the underlying assets for the ETFs.

Bosera Asset Management, operating as a Hong Kong-based entity of one of the first five fund management companies established in China, along with HashKey Capital, also confirmed that they’ve secured conditional approval for two spot crypto ETFs. However, they didn’t elaborate on the specifics of the “conditional approval.”

Bosera and HashKey intend to jointly launch a spot Bitcoin ETF, named the Bosera HashKey Bitcoin ETF, and a spot ether ETF, known as the Bosera HashKey Ether ETF. These ETFs are poised to enable investors to subscribe for shares directly using bitcoin and ether. The timeline for the launch remains undisclosed.

According to Bosera, the introduction of Virtual Asset Spot ETFs not only presents fresh asset allocation avenues for investors but also underscores Hong Kong’s stature as an international financial center and a focal point for virtual assets.

Hong Kong’s crypto ETFs approval impact

SFC’s conditional approval of the spot Bitcoin and Ethereum ETFs signals a pivotal moment for Asian investors, providing them with new avenues to access and invest in digital assets.

The approval of these ETFs underscores Hong Kong’s commitment to fostering innovation in the financial sector and solidifying its position as a leading hub for crypto investments in Asia.

By greenlighting the ETFs, the SFC has opened doors for institutional and retail investors alike to participate in the burgeoning cryptocurrency market.

Hong Kong’s move comes on the heels of similar developments in the United States, where the Securities and Exchange Commission (SEC) recently approved the first spot Bitcoin ETFs and the global cryptocurrency market responded positively to the developments, with both Bitcoin (BTC) and Ethereum (ETH) witnessing increases in value following the news.

Hong Kong leapfrogs the U.S. on Spot Ethereum ETFs

While the U.S. was the first to approve a spot Bitcoin ETF, Hong Kong has become the first to approve a spot Ethereum ETF.

At the moment the U.S. SEC is receiving comments from the public on three ether spot ETFs proposed by Grayscale Investments, Fidelity, and Bitwise. The comment period will run for three-weeks.

Despite the optimism surrounding the approval of Bitcoin ETFs earlier this year, industry analysts have tempered expectations regarding the SEC’s stance on products tracking Ethereum.

While the approval of the Bitcoin ETFs catalyzed increased investment in the cryptocurrency, the regulatory landscape surrounding Ethereum remains uncertain amid SEC’s ongoing probe into the classification of ETH as a security.

In addition, SEC Chair Gary Gensler’s remarks in January emphasized that the approval of Bitcoin ETFs does not necessarily imply a similar stance towards other cryptocurrencies like Ethereum.

The post First spot Ethereum ETFs approved as Hong Kong green lights crypto ETFs appeared first on Invezz

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