Hong Kong SFC Approves Spot Bitcoin and Ethereum ETFs as Market Rebounds

CryptoNews.com

2024-04-14 23:39:19

Hongji Feng

Last updated:

April 15, 2024 03:39 EDT | 1 min read

Hong Kong Securities and Futures Commission (SFC) has just approved first spot Bitcoin and Ethereum exchange-traded funds (ETFs).

Several official announcements have confirmed the approvals, including those submitted by China Asset Management Co. (China AMC), Harvest Global Investments, and Bosera International and HashKey Capital.

First Bitcoin ETF Issuers in Hong Kong

According to the post published by China AMC’s Hong Kong subsidiary, the SFC granted the firm the rights to provide digital asset management services to the investors. China AMC plans to launch ETF products linked to spot Bitcoin (BTC) and Ethereum (ETF).

China AMC Hong Kong will partner with the digital asset platform OSL Digital Securities and the custodian Bank of China International-Prudential Trustee Limited (BOCI-Prudential Trustee Limited) to introduce the ETFs.

Harvest Global Investments announced that it has received in-principle approval from the SFC for two spot crypto ETFs, according to a company statement. The firm also noted that these ETFs will be issued in collaboration with OSL.

Harvest Global’s Official Announcement (Source: Harvest Global)The company said that the new products will effectively address issues such as excessively high margin requirements, price premiums caused by the absence of short sellers, and losses from rolling positions, thereby more accurately reflecting the immediate value of Bitcoin.

Bosera International and HashKey Capital have reportedly been greenlighted to offer Bitcoin and Ethereum ETFs, too. Bosera and HashKey announced their strategic cooperation on April 6 during the 2024 Hong Kong Web3 Festival.

Bitcoin and Ethereum Respond Povisitvely

Following the approvals, Bitcoin price has rebounded and is currently trading at $66,321, 2.4% up from yesterday, according to CoinMarketCap.

Ethereum price is also ed by the announcement, trading at $3,250 at the time of writing, up by 5.2% within the past 24 hours.

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