Hong Kong may soon see the launch of its inaugural spot bitcoin and ether exchange-traded funds (ETFs) as several local companies disclosed receiving provisional approval from the SAR’s securities regulator on Monday.

Reports indicate that among these firms are the Hong Kong divisions of Harvest Global Investments and Bosera Asset Management. These entities, as per now-deleted social media posts, revealed that the Hong Kong Securities and Futures Commission (SFC) had granted them the go-ahead to partake in cryptocurrency transactions.

While Harvest Global Investments and Bosera Asset Management shared their updates on social media, China Asset Management’s Hong Kong branch made a similar announcement on WeChat, which still remains accessible. The company stated that the SFC had authorized them to offer virtual asset management services and was actively preparing to introduce bitcoin and ether EFT-related products.

Despite these announcements, the SFC has not issued an official statement to validate the reports.

In response to a query from Reuters, the SFC emphasized its endorsement of ETF applications that adhere to the prescribed terms and conditions. However, there was no explicit mention of cryptocurrency trading in their response.

The regulatory landscape for cryptocurrencies in Asia varies significantly, with countries like Japan embracing crypto exchanges while others, such as China, enforce outright bans. Hong Kong, although under Chinese sovereignty, maintains a distinct financial market due to its semi-autonomous status.

Upon the establishment of spot bitcoin and ether ETFs, Hong Kong will emerge as the pioneering Asian jurisdiction offering such financial products, subsequent to the US approval of bitcoin ETFs a few months prior.

Forbes reports that the current valuation of the cryptocurrency market stands at an impressive US$2.54 trillion.

[ See more: Explainer: A beginner’s guide to blockchain]