Cryptos gain as Hong Kong greenlights bitcoin, ether ETFs
investmentnews.comHong Kong gave conditional approvals for asset managers to start spot-Bitcoin and Ether exchange-traded funds, the firms said, a development that boosted both tokens and the wider crypto market.
Harvest Global Investments Ltd. and a partnership between HashKey Capital Ltd. and Bosera Asset Management (International) Co. announced initial approvals in separate statements on Monday.
The Hong Kong unit of China Asset Management said it had received approval from the city’s Securities & Futures Commission for the provision of virtual-asset management services and is deploying resources to develop products.
Hong Kong is vying with the likes of Singapore and Dubai to become a digital-asset hub after rolling out a dedicated regulatory regime last year. Officials are trying to restore the city’s reputation as a modern financial hub following a crackdown on dissent that dulled its allure.
The SFC said the agency issues a conditional authorization letter to an ETF application if it generally satisfies its requirements, subject to various conditions. An applicant would then apply to Hong Kong Exchanges and Clearing Ltd. for listing approval, the SFC added.
In a statement, OSL Digital Securities Ltd. said it would provide custodial services for Bitcoin and Ether products from the China Asset Management unit as well as Harvest.
The crypto market got a boost from the latest developments. Bitcoin rose as much as 4.3% and Ether 6.5%. The tokens traded at $66,232 and $3,253 respectively as of 4:30 p.m. Monday in Hong Kong.
Spot-crypto ETFs have been in the spotlight after Bitcoin funds from companies including BlackRock Inc. and Fidelity Investments debuted in the US in January. The portfolios have attracted a net inflow of $12.5 billion
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