SFC has approved spot Bitcoin and Ethereum ETFs, making Hong Kong the first jurisdiction to issue a spot Ethereum ETF.
The SFC has given the go-ahead for spot Bitcoin ETFs and spot Ethereum ETFs trading in the region. The approval aligns with the anticipated timelines.
This also makes Hong Kong the first jurisdiction to issue a spot Ethereum exchange-traded fund (ETF), while the United States Securities and Exchange Commission (SEC) is still considering the possibility.
SFC Grants ETF Approvals To Several Firms
According to a local new publication, the Hong Kong SFC has granted approval to a number of prominent financial firms, including China Asset Management, Bosera Capital, and HashKey Capital Limited, for their applications to launch Bitcoin and Ethereum spot exchange-traded funds (ETFs).
These firms are among the ones that have received approval. As a result of this development, investors are now able to directly acquire shares in these exchange-traded funds (ETFs) using Bitcoin and Ethereum.
In addition to these licenses, Harvest Global Investments disclosed that the Hong Kong SFC has granted preliminary clearance for the construction of Bitcoin and Ethereum digital asset spot ETFs.
This development indicates that the landscape of digital asset investment will continue to expand. Han Tongli, the Chief Executive Officer and Chief Information Officer of Harvest International, made the following statement regarding the development:
“This time Harvest’s investment in two major digital asset spot ETF products has been approved in principle, which not only highlights Hong Kong’s competitive advantages in the field of digital assets, but also demonstrates Harvest International’s drive to promote industry innovation and satisfaction. This is a reflection of our continued leadership and innovation in the field of blockchain assets and AI investment.”
Harvest’s investment in the two major digital asset spot ETF products will be through OSL Digital Securities Co., Ltd., the first digital asset platform licensed and insured by the Hong Kong Securities and Futures Commission.
This particular solution will efficiently resolve the high margin requirements, price premiums, and rollovers resulting from the lack of short positions. In addition to more precisely reflecting Bitcoin’s value in real time, it can tackle problems such as warehouse losses.
At this time, Mainland China’s government has announced a blanket ban on cryptocurrency in the region. At this point in time, it appears unlikely that it will gain access to exchange-traded funds (ETFs) listed in Hong Kong.
Issuers in Hong Kong have confirmed the existence of regulatory limits that prevent mainland Chinese funds from participating in cryptocurrency-related exchange-traded funds (ETFs).
Recent communication from ETF issuers in Hong Kong has cleared up misconceptions about the investment capabilities of mainland Chinese investors participating in the Southbound Stock Connect program.
Developed to encourage cross-border investment between mainland China and Hong Kong, the Southbound Stock Connect program excludes digital currency products.
This is due to China’s conservative stance on the risks associated with cryptocurrencies.
