In a significant development for Hong Kong’s crypto market, the Securities and Futures Commission (SFC) has given the green light to several spot Bitcoin and Ethereum exchange-traded funds (ETFs). This decision marks a milestone in the region’s crypto landscape, paving the way for greater accessibility and legitimacy in digital asset investments.
On Monday during the early Asian session, the Hong Kong-based China Asset Management announced that it has received approval from the Hong Kong Securities and Futures Commission (SFC) to provide virtual asset management services to investors. Thus, China Asset Management can now offer investors spot Bitcoin and Ethereum ETFs. The same opportunity also spreads over such territories as Hong Kong, Greater China, Asia Pacific, Europe and the USA.
Notably, China Asset Management has ostensibly partnered with OSL Digital Securities Co., Ltd., a leading partner in the virtual asset industry, and BOC International Prudential Trusteeship Ltd., a leading custodian, to deploy the spot Bitcoin and Ethereum ETFs. The parent company of Hong Kong-based China Asset Management ranks among China’s largest fund companies. It boasted over $266 billion in assets under management (AUM) as of December 2023.
The approvals reflect Hong Kong’s progressive regulatory framework. It aims to safely and securely integrate digital assets within its financial ecosystem. Experts anticipate establishing these ETFs will offer regional retail and institutional investors a regulated, innovative investment avenue. While there is not as much hype as there is around US ETFs, some analysts believe the impact could be similar.
Direct Impact on Bitcoin & Ethereum Prices
After experiencing a choppy weekend that resulted in heavy cryptocurrency liquidation, the total crypto market cap has gained nearly 5 percent in the past 24 hours to about $2.53 trillion. Bitcoin and Ethereum prices edged 2.5 percent and 4.4 percent higher in the past 24 hours. This follows the announcement of spot ETF approval in Hong Kong.
Approval of spot BTC and Ether ETFs in Hong Kong will increase the influence of US-based spot ETFs, which have taken more than three percent (3%) of Bitcoin’s circulating supply.
With the fourth Bitcoin halving happening later this week, a popular crypto analyst alias, Captain Faibik, is confident. He believes the flagship coin will break out of a bullish pennant soon. According to analysts, forthcoming global conflicts in the Middle East are bullish for Bitcoin and digital assets.
$BTC is Bouncing Back but Still Moving inside the Pennant. 📈
– 🇭🇰 Hong Kong approves spot #Bitcoin & #Ethereum ETF application.
– Only 5 days till the Bitcoin halving. ⏰ pic.twitter.com/gY3SbqG6in
— Captain Faibik (@CryptoFaibik) April 15, 2024
Related Reading | Bitcoin ETFs in Hong Kong could surge demand to $25 Billion
Rida Fatima
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