Hong Kong is poised to become a major player in the global cryptocurrency market, with reports suggesting the Securities and Futures Commission (SFC) could approve the launch of spot bitcoin and ether exchange-traded funds (ETFs) as early as next week. This move would mark a significant step forward for Hong Kong’s ambitions to establish itself as a leading Asian crypto hub.
HashKey Capital, a prominent digital asset management firm, is expected to be among the first issuers to receive the green light, according to Bloomberg sources. This news comes just days after HashKey announced an upgrade to its licensing conditions from the SFC, paving the way for them to offer virtual asset investment products, including ETFs, to retail investors.
“This approval paves the way for HashKey Capital Limited to manage virtual asset investment products that may be offered to retail investors,” HashKey stated in a press release. The company also highlighted its recent partnership with Bosera International, which they believe will “drive innovation and fostering growth” in the market, particularly with the launch of spot ETFs.
While HashKey declined to comment on the ETF approval rumors, another potential issuer is reportedly the international arm of Harvest Fund Management, a major Chinese asset manager. If the SFC grants approval to these firms, the ETFs could be launched by the end of April, offering a new avenue for investors in Hong Kong to gain exposure to the cryptocurrency market.
This news comes in stark contrast to the situation in the United States, where the Securities and Exchange Commission (SEC) approved spot bitcoin ETFs in January but has yet to greenlight similar products for ether. A decision on ether ETFs is expected by late May, but analysts at Bloomberg hold a pessimistic view, assigning low odds of approval for applications submitted by firms like BlackRock and Ark 21Shares.
Hong Kong’s potential approval of spot bitcoin and ether ETFs signifies a shift in regulatory stance and a willingness to embrace the potential of the cryptocurrency market. This move could attract significant investment capital to the region and further solidify Hong Kong’s position as a frontrunner in the Asian crypto landscape.
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