Hong Kong To Approve Spot Bitcoin and Ethereum ETF In Days: Report

Hong Kong is on the verge of making a significant move in the world of digital finance, as it prepares to approve Spot Bitcoin ETF and the Ethereum version in a few days. As reported by Bloomberg, this decision marks a pivotal moment for the region, demonstrating its growing acceptance of cryptocurrencies and its desire to position itself as a leading hub for digital asset trading.

Hong Kong Leads Asia’s Crypto Policies

According to individuals familiar with the matter, the International arm of Chinese asset manager Harvest Fund Management Co. and a partnership between Bosera Asset Management International Co. and HashKey Capital are expected to receive approval for the spot crypto ETFs launch. These approvals would represent a major milestone for the firms involved and the wider digital asset ecosystem in Hong Kong.

Meanwhile, both companies plan to introduce their ETFs by the end of the month, pending approval from the Securities and Futures Commission and finalizing listing details with Hong Kong Exchanges and Clearing Ltd. Although the exact time of approval is unknown, crypto enthusiasts expect the launch to come as soon as Monday, next week.

However, Hong Kong’s endorsement of crypto ETFs could set a precedent for other jurisdictions to follow suit, further legitimizing the asset class and paving the way for broader adoption.

U.S. Spot Bitcoin ETF Success Triggers Interest

The sudden open-mindedness of the agency is likely linked to the results that spot Bitcoin ETFs have recorded in the United States. It has been months since the U.S. SEC officially greenlighted the product. On the first day of trading, the spot BTC ETF market recorded as much as $4.5 billion. 

Moreover, the increased activity in the spot Bitcoin ETF market has contributed to the global Bitcoin rally. The leading cryptocurrency by market capitalization has once again established its dominance in the digital market ecosystem with a value of $69,888.10 according to CoinMarketCap at the time of the writing.

Regulatory Environment and Bitcoin Adoption

Regulatory officials in Hong Kong have expressed their commitment to fostering responsible and stable development in the digital assets industry, as evidenced by the region’s support for over 220 Web 3.0 companies.

Amid this positive regulatory environment, renowned Chinese fund manager Harvest submitted its spot BTC ETF application to the country’s Securities and Future Commission on January 26. Local reports also revealed that around ten fund managers, including those from China, Asia, and Europe, are actively working on launching spot ETFs in Hong Kong.