Hong Kong Opens Doors For Crypto ETF As It Plans To Grant Approval

On Monday, Hong Kong stirred the digital asset space with welcoming news. The country’s authorities gave initial approval to its first exchange-traded funds and spot bitcoin.

This takes the Asian city a step ahead when it comes to the acceptance of cryptocurrencies as an investment tool in the mainstream. According to the report, the virtual asset spot ETFs will be launched soon, with three offshore Chinese asset managers.

Hong Kong Opens Doors To Crypto As China Keeps Door Shut

The Hong Kong units of Bosea Asset Management and Harvest Fund Management stated that the Hong Kong regulatory body SFC has already given them conditional approvals to launch the ETFs.

Similarly, another firm with a subsidiary in Hong Kong, ChinaAMC (HK), stated that it has received regulatory approval to launch its virtual asset management service in the city. The company also stated that it has spot ETFs of both Bitcoin and Ethereum under development.

This is coming a few months after the US rolled out its first ETFs. Since the launch of the spot Bitcoin in the US, it has already garnered about $12 billion in net inflows.

While Hong Kong is opening its arms to welcome crypto and digital assets investment, the situation is different in China. It has since placed a ban on the trade or investments in crypto.

Now, Hong Kong has taken the lead in promoting digital assets as it wants to make the city a global hub for digital assets. The authorities have put several strategies in place to make the city more attractive for digital financial investments.

Hong Kong Takes Steps To Make The City A Digital Assets Hub

With the introduction of the Bitcoin ETFs, it will enable investors to gain new asset allocation opportunities. Bosera Asset Management stated that the move will further reinforce Hong Kong’s resolve to become a financial center and the go-to city for virtual asset investments.

Bosera also stated that it will be launching its products in collaboration with Hashhkey, a company based in Hong Kong.

Bosera intends to launch a subscription platform that will enable investors to use either Bitcoin or Ethereum to buy into the ETF shares directly. The company is looking to draw more interest in digital assets from the mainstream sector in Hong Kong, which represents a huge market.

The move by the Hong Kong authorities has also seen increased interest from Chinese financial institutions. Many of them have decried the setbacks they are facing due to the strict regulatory standards the Chinese government is using against digital assets.

With the conditional approval for Bitcoin spot ETFs, many digital asset companies in Asia may be looking at entering the Hong Kong market, where business in digital assets may seem favorable.