Hong Kong's securities regulator has granted conditional approval for the city's first spot-bitcoin and ether exchange-traded funds (ETFs), according to a report by AFP.
Hong Kong Grants Conditional Approval for Bitcoin and Ether ETFs
ChinaAMC (HK), a unit of China Asset Management, announced it had received regulatory approval from the Securities and Futures Commission of Hong Kong (SFC) to offer virtual asset management services and develop spot Bitcoin and Ethereum ETFs.
This endeavor is in collaboration with BOCI-Prudential Trustee Limited, a joint venture between the Bank of China (HK) and a British multinational insurance firm.
Additionally, according to Bloomberg, the Hong Kong units of Harvest Fund Management and Bosera Asset Management reported receiving conditional approvals from the SFC.
OSL Digital Securities will provide custody services to China AMC and Harvest to ensure trading safety, as announced by the licensed digital assets platform on Monday. OSL highlighted the significance of this collaboration, emphasizing its commitment to advancing digital asset investments in Hong Kong.
The company expressed enthusiasm about being selected as the first virtual asset trading and sub-custodian partner by China AMC, citing its established infrastructure and regulatory compliance.
"We are thrilled to collaborate with the talented team at China AMC, marking this milestone in the ETF landscape," Patrick Pan, Chairman of the Board & CEO of OSL, said in a press release statement.
"Being chosen as the first virtual asset exchange and sub-custodian partner not only reflects the high regard in which OSL is held but also demonstrates our commitment to advancing digital asset investments in Hong Kong, mirroring the trend of reputable partnerships seen in the U.S. market."
Global Interest in ETFs
Hong Kong's initiative to introduce spot Bitcoin and Ethereum ETFs comes amid global interest in ETFs pegged to Bitcoin's spot price, following approval in the United States three months ago.
Hong Kong's efforts to establish itself as a regional digital asset hub coincide with regulatory shifts opening up crypto markets to institutional demand. Analysts view Hong Kong's move as a strategic effort to compete with financial centers in accommodating cryptocurrencies as mainstream investment tools.
The city's Securities and Futures Commission previously signaled its readiness to allow retail investors to buy funds fully invested in digital assets, sparking a wave of applications from fund managers.
This regulatory stance reflects Hong Kong's ambition to explore new avenues for financial growth amid political uncertainty and China's economic challenges.
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