As per expected timelines, the Hong Kong Securities and Futures Commission (SFC) has given the green light for the trading of spot Bitcoin ETFs and spot Ethereum ETFs within its jurisdiction. This milestone makes Hong Kong the first jurisdiction to introduce a spot Ethereum ETF, while similar deliberations are ongoing with the US SEC.
Several prominent financial firms, including China Asset Management, Bosera Capital, and HashKey Capital Limited, have received approval from the Hong Kong Securities and Futures Commission for their applications to launch Bitcoin and Ethereum spot exchange-traded funds (ETFs), as reported by local new publication. This development enables investors to utilize Bitcoin and Ethereum directly to acquire shares in these ETFs.
In addition to these approvals, Harvest Global Investments revealed that the Hong Kong Securities and Futures Commission has granted preliminary approval for the creation of Bitcoin and Ethereum digital asset spot ETFs, signaling further expansion in the digital asset investment landscape. Speaking on the development, Han Tongli, CEO and CIO of Harvest International, said:
“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 HK’ SFC. This will help to effectively solve the excessive margin requirements, price premiums and rollovers caused by the lack of short positions. It can solve problems such as warehouse losses and more accurately reflect the real-time value of Bitcoin.
Currently, Mainland China has issued a complete crypto ban in the region. Thus, the chances of its access to Hong Kong-listed Bitcoin and Ethereum ETFs look slim at this stage. Issuers in Hong Kong have verified that regulatory constraints prohibit mainland Chinese funds from investing in cryptocurrency-related ETFs.
Communication from ETF issuers in Hong Kong in recent times has rectified misunderstandings regarding the investment capabilities of Chinese investors in the mainland participating in the Southbound Stock Connect program. The Southbound Stock Connect program, which was created to promote cross-border investment between mainland China and Hong Kong, does not include digital currency products, which is due to China’s conservative position on cryptocurrency risk.
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