Hong Kong Approves Bitcoin and Ethereum ETFs Amid Crypto Market Rebound

15 views 12:29 pm 0 Comments May 20, 2024

The week commenced on a positive note, witnessing Bitcoin’s surge above $66,000, marking a 3.02% increase in the last 24 hours, attributed to the developments in Hong Kong’s ETF sector.

Hong Kong has embraced the trend of spot cryptocurrency ETFs by approving several spot Bitcoin and Ethereum ETFs on Monday, signaling its aspiration to emerge as a prominent crypto hub in the region.

Leading asset manager China Asset Management’s Hong Kong division has been authorized by the Hong Kong Securities and Futures Commission (SFC) to provide retail asset management services linked to spot crypto ETFs. Collaborating with OSL and BOCI International, the next phase involves launching spot Bitcoin and Ethereum ETFs.

Harvest Global Investments has also secured initial approval from the SFC for its two spot crypto ETFs, enlisting OSL’s support to address concerns like high margin requirements.

Additionally, the SFC has sanctioned Bosera Asset Management and HashKey Capital, both set to jointly manage two spot crypto ETFs, underscoring Hong Kong’s regulatory advancements ahead of the imminent Bitcoin halving event.

In a bid to establish itself as a key cryptocurrency center, Hong Kong has been actively competing with Singapore and Dubai. Despite setbacks like the JPEX incident, where an unlicensed crypto exchange triggered a significant fraud, authorities persist in attracting crypto entrepreneurs.

Following a challenging weekend for Bitcoin and the broader crypto market, the approval of spot BTC and ETH ETFs in Hong Kong has coincided with a market recovery. Bitcoin saw a 3.1% surge in the past 24 hours, while Ethereum recorded an almost 6% increase. Altcoins like Solana also witnessed positive movement, with a 7.4% rise possibly influenced by recent network congestion resolution efforts.

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