In a significant development for the crypto world, Hong Kong is poised to greenlight Bitcoin and Ethereum exchange-traded funds (ETFs) as early as next Monday. The revelation, reported by Bloomberg, sparked a wave of optimism within the cryptocurrency community, especially following the impressive success of the Spot Bitcoin ETF in the US.
Additionally, the update underscores Hong Kong's ambition to solidify its position as a leading hub for digital assets.
Hong Kong gives green light to Bitcoin & Ether ETF
A recent report from Bloomberg suggests that Hong Kong may soon approve an ETF that invests directly in Bitcoin and Ethereum, two of the most prominent cryptocurrencies. If this speculation is true, international organizations such as Harvest Fund Management and the partnership between Vocera Asset Management (International) and Hashkey Capital will get the green light to launch spot crypto ETFs. It is expected.
Notably, these ETFs in Hong Kong are expected to be launched by the end of the month, pending regulatory approval from the Securities and Futures Commission (SFC) and finalization of listing details with the Hong Kong Exchange.
Meanwhile, the reported approval followed earlier indications that Harvest Fund Management was on track to obtain permission to introduce a spot Bitcoin ETF in Hong Kong. However, neither SFC nor Harvest has made any official comment on this matter.
Additionally, it's worth noting that despite expectations surrounding approval, the timeline could still change at the last minute, according to people familiar with the matter. Additionally, a previous report from CoinGape indicated that Hong Kong was planning to launch an Ethereum ETF before the US.
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Potential impact of approval on virtual currency markets
The impending approval of Bitcoin and Ethereum ETFs in Hong Kong could have far-reaching implications for global crypto markets. In particular, the introduction of spot Bitcoin ETFs in the US earlier this year has already helped boost the market, with assets under management in these ETFs reaching around $59 billion.
This influx of institutional investors has played a pivotal role in pushing Bitcoin prices to new highs, most recently reaching levels above $73,700 in mid-March. Hong Kong's move to embrace crypto ETFs highlights its ongoing competition with cities such as Singapore and Dubai to establish itself as a leading destination for digital asset companies.
However, despite the positive update, Bitcoin price was trading near the $70,762.75 flatline at the time of writing. At the same time, the trading volume in the past 24 hours decreased by 20.76% to $29.64 billion.
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