Hong Kong is expected to approve Bitcoin and Ethereum exchange-traded funds (ETFs) as early as Monday, according to people familiar with the matter. This development marks a significant development for the cryptocurrency sector in the region.
Harvest Fund Management, along with Bosera Asset Management and HashKey Capital, are poised to receive approval for applications for spot Bitcoin and Ether ETFs. These ETFs are expected to receive approval from the U.S. Securities and Futures Commission (SFC) by the end of April. The SFC is also said to be working with Hong Kong exchanges and clearing houses to finalize the approval process.
The exact timeline is still uncertain, but initial approval, which could include a Hong Kong Bitcoin ETF, could materialize as early as Monday, according to sources.
Regulators in the region have already approved the launch of cryptocurrency-backed ETFs. Specifically, CSOP Ether Futures, Samsung Bitcoin Futures, and CSOP Bitcoin Futures boast a combined estimated value of $170 million.
The Bitcoin ETF has seen strong inflows since its launch, contributing to the revival of the cryptocurrency market. By mid-April, the total assets under management of the 11 ETFs are expected to surge to $73 billion, with $59 billion raised to date. Net inflows into Blackrock’s iShares Bitcoin Trust surpassed $15 billion in just three months.
As of earlier this week, Harvest was expected to secure approval to launch a spot Bitcoin ETF in the city. Harvest and China Asset Management received approval from the SFC on April 9 to provide virtual asset fund management services.
Regulators are actively trying to allow investors to purchase spot ETFs. SFC Deputy Director of Intermediaries Julia Leung confirmed that the regulator is “actively seeking to establish a framework to approve ETFs that provide investor guarantees for mainstream virtual assets.”
Despite facing challenges such as the rise of unlicensed cryptocurrency exchange JPEX, which was implicated in an alleged $1.6 million fraud, Hong Kong remains steadfast in its ambitions to support cryptocurrency entrepreneurs and restore its reputation as a global business hub.
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