Hong Kong officially approved a series of Bitcoin spot ETFs

According to Coindesk, Hong Kong (China) on April 15 gave initial approval to asset managers to start spot Bitcoin exchange-traded funds, marking a new step forward in promoting the asset. digital currency in particular and the cryptocurrency market in general.

Specifically, Harvest Global Investments fund, two Chinese asset managers HashKey Capital and Bosera Asset Management (International) issued statements that they received approval from the Government on April 15.

The Hong Kong unit of China Asset Management - a Chinese asset management company - also said it has also received approval from the Hong Kong Securities Commission (SFC) to provide asset management services. virtual and is deploying resources for product development.

In addition, two Harvest Global Investments funds will also be issued in collaboration with OSL.

During the trading session on the same day, the cryptocurrency market was immediately boosted by the Government's decision to give the green light to spot funds. Bitcoin extended its gains by 4.3% to around $66,629, while Ether added another 6.1% to $3,257 on the same day.

Hong Kong is competing with Singapore and Dubai to become a hub for digital asset firms after rolling out a regulatory regime for virtual asset service providers in 2023.

In early January 2024, the US gave the green light to nearly a dozen spot ETFs, some of which are run by leading global asset managers such as BlackRock and Fidelity. Since then, these funds have accumulated $12 billion in investment funds, pushing Bitcoin to a new record high above $73,000.

Standard Chartered Bank analysts predict that spot Bitcoin ETFs could attract $50-100 billion in investment capital this year alone, potentially pushing bitcoin prices up to $100,000. Some other analysts believe that the amount of capital flowing into spot Bitcoin ETFs will only reach about $55 billion in 5 years.

From a technical standpoint, the approval of the Bitcoin and Ether ETF in Hong Kong is an important milestone for the cryptocurrency market. ETFs offer investors a regulated and potentially more accessible way to invest in digital assets, which could attract more institutional capital into the market.

Additionally, providing custody services for these ETFs enhances their reliability and security, addressing concerns about the safety of holding cryptocurrencies.

Lesley Montoya

Update 15 April 2024