A significant development in the cryptocurrency market is expected as Hong Kong prepares to launch its first cryptocurrency ETFs focused on Bitcoin and Ethereum on April 15, 2024. Bloomberg recently reported that the Securities and Futures Commission (SFC) of Hong Kong is finalizing the registration of these spot ETFs, marking a notable advance in the financial landscape of the region.
The potential issuers of these ETFs include well-known names such as Harvest Fund Management Company, HashKey Capital, and Bosera Asset Management Company. Sources close to the matter suggest that the SFC is likely to approve the applications for both types of cryptocurrency ETFs soon.
This move is anticipated to attract significant capital from Chinese investors, potentially boosting the growth of Bitcoin and Ethereum. The approval and launch of these ETFs are seen as key drivers that could stimulate further investment into the cryptocurrency sector.
As background, information surfaced on April 9 that Harvest Fund was preparing to receive approval for a spot Bitcoin ETF. At that time, it was reported that Bosera Funds and Huili Financial had not yet been included in the list of companies authorized to manage virtual assets.
The approval of these applications does not guarantee that the cryptocurrency ETFs in Hong Kong will be launched exactly on April 15. Industry experts believe that the companies will need approximately two weeks to prepare the investment products, indicating that the ETFs might start operating by the end of April.
Currently, traders in Hong Kong have access to three futures Bitcoin ETFs: CSOP Bitcoin Futures, CSOP Ether Futures, and Samsung Bitcoin Futures. The total assets of these funds are estimated at around $170 million.
Furthermore, in late January, Harvest Fund filed an application to launch a spot Bitcoin ETF in Hong Kong. This fund is one of the largest investment funds in China, with assets estimated to be around $200 billion.
Previously, the CEO of the cryptocurrency exchange OSL predicted the launch of cryptocurrency ETFs in Hong Kong for the second quarter of 2024, aligning with current developments.
This anticipated approval and subsequent launch of the Bitcoin and Ethereum ETFs not only represent a pivotal moment for cryptocurrency investment in Hong Kong but also potentially set a precedent for other markets in Asia to follow. With these developments, Hong Kong could strengthen its position as a leading financial hub in the Asian region, particularly in the burgeoning field of cryptocurrency investments.
