By
Godfrey Benjamin
April 29th, 2024
The crypto market has regained traction following the approval of the ETFs in Hong Kong.
Hong Kong has become the second country in the world to greenlight Bitcoin (BTC) exchange-traded funds (ETFs) and the first for Ethereum (Ether) in 2024. The crypto-friendly nation follows in the footsteps of the United States, which welcomed the investment vehicles earlier this year in January.
On April 15, 2024, two companies awaiting a decision from Hong Kong’s Securities and Futures Commission (SFC) announced their applications had been approved. This regulatory greenlight allows them to offer spot BTC and Ether ETFs to their retail customers in compliance with local regulations.
Hong Kong Approves Spot ETFs Applications
One of the companies, the Hong Kong arm of China Asset Management, said in a statement that it had received approval from the SFC to offer retail asset management services to retail customers in the country. The firm is among China’s leading asset financial services companies, with $271 billion in assets under management.
The Chinese asset manager said it will provide the new services in collaboration with OSL and BOCI International. Both digital asset trading platforms are fully registered in Hong Kong under its new licensing regime, allowing crypto exchanges to offer their business offerings to retail traders.
Harvest Global Investments, another company that received SFC approval for BTC and Ether spot ETFs, also announced that its two applications were approved. The firm secured an in-principle approval from Hong Kong’s market watchdog for its new crypto ventures.
Conditional Approval for Crypto ETFs
Like China Asset Management, Harvest Global Investments plans to partner with OSL to issue new investment products in hopes of addressing issues related to high-margin requirements.
Additionally, Bosera Asset Management, a Hong Kong division of a prominent Chinese asset manager, and HashKey Capital revealed to The Block in an interview that the SFC also approved their joint spot ETF applications.
The companies received conditional approval for two crypto ETFs managed by the duo: the Bosera HashKey Bitcoin ETF and the Bosera HashKey Ether ETF. These ETFs will allow investors to subscribe for shares using BTC and Ether directly. However, the firms have not disclosed the launch timeline for the new products.
“The introduction of the Virtual Asset Spot ETFs not only provides investors with new asset allocation opportunities but also reinforces Hong Kong’s status as an international financial center and a hub for virtual assets,” Bosera said.
Crypto Market Regains Strength Following ETF Approvals
Meanwhile, the crypto market has regained traction following the approval of the ETFs in Hong Kong. According to CoinMarketCap data, the global market cap regained 3.91% in the last 24 hours to reach $2.43 trillion after its sudden drop over the weekend.
Bitcoin dropped to below $ 62,000 after the news of the Israel attack by Iran. On the other hand, Ether declined below $3100 for the first time since the market resurgence last month, which saw BTC reach a new record high of over $ 73,000.
Despite the drop, BTC recovered slightly and is currently trading at $ 66,000, while Ether stands at $3,239. Other altcoins also recovered somewhat from the drop over the weekend. Solana (SOL) is back at $155 with a 24-hour rise of 9.04%, while meme coins such as Dogecoin (DOGE) recovered 5.58% in the past 24 hours.