Hong Kong regulators are poised to approve the launch of a Bitcoin and Ethereum ETF.
Approval could be announced as early as April 15, according to Bloomberg Insights. If the ETF is approved, Hong Kong will become the first country in Asia to offer a functioning Bitcoin and Ethereum ETF.
The international arm of China's Harvest Fund Management Co., Ltd. and a joint venture between Vocera Asset Management (International) Co., Ltd. and Hushkey Capital are set to receive the first approval for a cryptocurrency spot ETF. Approval is currently pending final checks.
Both asset management companies are ready to introduce the ETF by the end of this month, subject to final approval from the Securities and Futures Commission (SFC) and the signing of a listing agreement with the Hong Kong Exchange.
Last week, the SFC authorized Harvest and China Asset Management to manage virtual asset-related funds. The Spot Bitcoin ETF, launched in the US in January, has contributed significantly to the boost in the crypto market this year, illustrating the potential impact of Hong Kong's entry into this financial product space.
Following SEC approval in January, the Spot Bitcoin ETF has amassed more than $59 billion in total assets. Massive inflows into these ETFs pushed Bitcoin to new all-time highs in March. Hong Kong, a major market in Asia, could also have a major impact on the Bitcoin and Ethereum markets following ETF approval.
The London Stock Exchange may launch Bitcoin and Ethereum exchange-traded notes (ETNs) in May, with features similar to ETFs. This approval will allow institutional investors to more easily access cryptocurrencies without the complexities of purchasing, storing, and securing them directly.
