Hong Kong Regulators Will Now Allow Bitcoin and Ether ETFs Amid Growing Crypto Adoption

By Thea Felicity

Apr 15, 2024 12:35 PM EDT

SEC Decision On Bitcoin ETF Approval Expected Soon
LONDON, ENGLAND - JANUARY 09: In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is seen on January 09, 2024 in London, England. Bitcoin investors are expecting the U.S. Securities And Exchange Commission (SEC) to issue a decision soon on whether to grant Bitcoin "exchange-traded fund" (ETF) approval, which would allow people to invest in Bitcoin without having to buy it on a crypto exchange like Coinbase or Binance. The price of Bitcoin has risen in anticipation of such approval.
(Photo : Photo illustration by Dan Kitwood/Getty Images)

Hong Kong's financial regulators have approved the launch of spot bitcoin and ether exchange-traded funds (ETFs), embracing cryptocurrency in the region. This move, announced on Monday and reported by CNBC, follows similar actions in the United States to introduce these products to the market.

ChinaAMC, Harvest Global, and Bosera International are among the companies approved by Hong Kong's Securities and Futures Commission (SFC) to issue ETFs focused on bitcoin and ether. 

While this development shows Hong Kong's efforts to position itself as a regulated crypto hub, it also raises questions about the participation of mainland Chinese investors, given the crypto trading ban imposed in mainland China in 2021.

READ NEXT: Seized $2 Billion Silk Road Bitcoin Moved to Coinbase Wallet by the US Government -Is It Selling Them Again?

The approval comes amidst a surge in interest in cryptocurrency ETFs, particularly bitcoin ETFs, in the global market. An earlier report from VCPost showed that Bitcoin recently surpassed an all-time high.

Now, these financial instruments allow investors to gain exposure to the price movements of cryptocurrencies without directly owning them. Hong Kong's move is expected to attract traditional investors to the crypto market, potentially reshaping investment dynamics in the region.

Notably, this decision positions Hong Kong as one of the pioneering jurisdictions that approved an ether ETF, distinguishing it from other global financial centers. While the US Securities and Exchange Commission (SEC) has yet to approve such a product, industry experts do not anticipate immediate approval from the regulator.

READ MORE: Bitcoin Reaches New All-Time High, Surpassing $71,000!

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics