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Hong Kong has reportedly approved its first spot bitcoin exchange-traded funds (ETFs), and several issuers announced that they have received permission to launch bitcoin ETFs.
China Asset Management, Bosera Capital and other applicants posted on social media that they obtained authorization to list spot bitcoin ETFs in Hong Kong. However, the Securities and Futures Commission (SFC) has not yet published an official list of approved issuers.
According to publications, the SFC gave the green light to China Asset Management to offer bitcoin and Ether spot ETFs in partnership with OSL and BOCI International. Other approved issuers include Harvest Global Investments, HashKey Capital and Bosera Asset Management.
The news reflects the success of spot bitcoin ETFs in the US, which launched in January and quickly attracted more than $200 billion in trading volume. Hong Kong's approval marks a milestone as the first jurisdiction in Asia to adopt spot bitcoin ETFs.
ETFs provide exposure to real bitcoin rather than derivatives, offering investors direct access to the assets. They also present a regulated investment vehicle that mitigates some of the risks of bitcoin.
By approving ETFs, Hong Kong cements its pro-bitcoin stance amid ongoing efforts to become a financial center. Accessible exchange-traded funds could stimulate significant retail and institutional demand.
However, an official announcement from the SFC is still pending. Some of the social media posts sharing the supposed endorsement have since been deleted. Opacity around permits could contribute to market uncertainty in the short term.
Nonetheless, the reported approvals indicate Hong Kong regulators' willingness to satisfy investors' growing appetite for bitcoin. The launch of the ETFs will mark an important milestone for bitcoin adoption and maturity in Asia.
