A Milestone in Hong Kong’s Financial Landscape
The Hong Kong Securities and Futures Commission (SFC) has given the green light for the trading of spot Bitcoin ETFs and spot Ethereum ETFs, marking a significant milestone in the region’s financial history. This move positions Hong Kong as the first jurisdiction to introduce a spot Ethereum ETF, with similar discussions ongoing with the US SEC.
Top Firms Secure Bitcoin, Ethereum ETF Approval in Hong Kong
Several major financial players, including China Asset Management, Bosera Capital, and HashKey Capital Limited, have received approval from the SFC to launch Bitcoin and Ethereum spot exchange-traded funds (ETFs). This development allows investors to use Bitcoin and Ethereum directly to acquire shares in these ETFs, making these assets more accessible to mainstream investors.
HK etf approval means btc and eth are becoming mainstream assets that even your mother could buy from a bank.
— Joseph Young (@iamjosephyoung) April 15, 2024
This is a game changer.
Harvest Global Investments Leading the Way
Harvest Global Investments has received preliminary approval from the SFC for the creation of Bitcoin and Ethereum digital asset spot ETFs. Harvest’s CEO, Han Tongli, sees this as a testament to Hong Kong’s competitive edge in digital assets and the company’s commitment to innovation.
Harvest’s Role in Digital Asset Spot ETFs
Harvest’s investment in digital asset spot ETFs will be facilitated through OSL Digital Securities Co., Ltd., the first digital asset platform licensed and insured by the SFC. This move aims to address issues like excessive margin requirements and price premiums, providing a more accurate reflection of Bitcoin’s real-time value.
Will Mainland Chinese Investors Get Access?
Due to mainland China’s crypto ban, access to Hong Kong-listed Bitcoin and Ethereum ETFs for Chinese investors seems unlikely. Regulatory constraints prevent mainland Chinese funds from investing in cryptocurrency-related ETFs. The Southbound Stock Connect program, which promotes cross-border investment between mainland China and Hong Kong, does not include digital currency products, aligning with China’s conservative stance on cryptocurrency risk.
