Hong Kong Paving the Way for Bitcoin and Ether Spot Exchange-Traded Funds (ETFs)
Summary:
Hong Kong is advancing towards the launch of Bitcoin and Ether spot exchange-traded funds (ETFs), as local regulators have given conditional approvals to at least three local issuers. The Hong Kong units of Harvest Fund Management, Bosera Asset Management, and China Asset Management have received the green light from the Hong Kong Securities and Futures Commission (SFC), and ETFs will be debuted as 'in-kind ETFs'. The move is aimed at providing investors with new asset allocation opportunities, cementing Hong Kong's position as an international financial hub and a virtual asset stronghold.
Hong Kong is taking steps to usher in spot exchange-traded funds (ETF) for Bitcoin (BTC) and Ether (ETH), thanks to local regulators' approval for at least three domestic issuers. On April 15, the Hong Kong Securities and Futures Commission (SFC) provisionally sanctioned the inaugural spot BTC and ETH ETFs, as reported by Reuters. Several offshore Chinese asset managers are on the line-up for the launch of their spot Bitcoin and Ether ETFs, among them being the Hong Kong branches of Harvest Fund Management, Bosera Asset Management, and China Asset Management. Reports indicate that Harvest and Bosera, based in Hong Kong, have earned conditional approvals from the SFC, paving the way to roll out their ETFs. Meanwhile, the Hong Kong branch of China Asset Management — ChinaAMC — announced it has been granted regulatory approval for presenting virtual asset management services, and it's in the process of crafting spot ETFs for BTC and ETH. The SFC grants a conditional authorization letter for an ETF application if it meets the generally needed requirements, with a few conditions attached, such as charges for services, document submission, and the approval of listing by the Hong Kong Stock Exchange (HKEX). Bosera's Bitcoin and Ether ETFs, which will be introduced with the cooperation of Hong Kong's HashKey Capital, would be debuted as in-kind ETFs — under this model, BTC and ETH are used to issue new ETF shares. This contrasts with the cash-create redemption model – by which new ETF shares can only be manufactured with cash – a model which local regulators in the United States have favored. Bosera has gone on record stating that the beginning of these virtual asset spot ETFs introduces fresh asset distribution opportunities for investors, endorsing Hong Kong's status as a global financial hub and hotbed for virtual assets. So, other issuers such as ChinaAMC are partnering with OSL Digital Securities, a major local digital asset platform, to launch spot Bitcoin and Ether ETFs. Bosera and Harvest, when reached out for comments on the ETF sanctioning by Hong Kong, have yet to respond.
Published At
4/15/2024 2:53:30 PM
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