Hong Kong has reportedly approved its first spot Bitcoin exchange-traded funds (ETFs), with several issuers announcing they have received approval to launch Bitcoin ETFs.
China Asset Management, Bosera Capital and other applicants posted on social media that they had obtained permission 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 the reports, the SFC has given the green light to China Asset Management to offer spot Bitcoin and Ether ETFs in partnership with OSL and BOCI International. Other approved issuers include Harvest Global Investments, HashKey Capital and Bosera Asset Management.
This news reflects the success of spot Bitcoin ETFs in the United States, which launched in January and quickly attracted more than $200 billion in trading volume. Hong Kong's approval marks a significant milestone as the first jurisdiction in Asia to adopt spot Bitcoin ETFs.
ETFs provide exposure to actual Bitcoin rather than derivatives, giving investors direct access to assets. They also present a regulated investment vehicle that mitigates some of the risks of Bitcoin.
By approving ETFs, Hong Kong solidifies its pro-Bitcoin position amid ongoing efforts to become a financial hub. Accessibly traded funds could drive significant retail and institutional demand.
However, an official announcement from the SFC remains pending. Some of the social media posts sharing this alleged endorsement have since been deleted. Opacity around authorizations could contribute to market uncertainty in the short term.
Nonetheless, the reported approvals demonstrate Hong Kong regulators' willingness to respond to investors' growing appetite for Bitcoin. The launch of the ETFs will mark a major milestone for the adoption and maturity of Bitcoin in Asia.