Hong Kong will launch its first spot bitcoin and ether exchange-traded funds (ETFs) on April 30, cementing the city’s role as a virtual-asset hub, in contrast to mainland China’s crackdown on cryptocurrencies.
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Hong Kong’s Securities and Futures Commission (SFC) has approved both retail and institutional investors directly investing in bitcoin and ether, the world’s two largest cryptocurrency tokens, making the city the envy of the underground crypto investor community on the mainland where bitcoin trading and mining activities are banned.
The first batch of approved Hong Kong-based ETFs are managed by Chinese fund managers Harvest International and China Asset Management, with a jointly managed product offered by Mainland Chinese Bosera Asset Management and Hong Kong virtual asset firm HashKey Capital.
“With the growing adoption of ETFs in institutional asset allocation and retail trading in Hong Kong, we expect robust demand for our offerings,” said Thomas Zhu, head of digital assets and Family Office Business at China Asset Management.
The SFC’s nod to spot bitcoin and ether ETFs makes Hong Kong the first jurisdiction in Asia to approve such products, and it comes after the US Securities and Exchange Commission in January approved spot bitcoin ETFs.
