Hong Kong conditionally approves its first spot Bitcoin ETFs, signaling its ambition to become a major hub for Bitcoin investment in Asia.
Hong Kong has conditionally approved its first spot bitcoin exchange-traded funds (ETFs), as announced by several asset management firms, marking a significant step towards integrating Bitcoin into mainstream investment within Asia. China Asset Management, Bosera Capital, and other entities shared news of their approvals on social media, although these posts were made in advance of an official statement from the Securities and Futures Commission (SFC), with some posts later being deleted.
China Asset Management, in partnership with OSL and BOCI International, has been authorized to offer spot Bitcoin ETFs. Other firms, such as Harvest Global Investments and HashKey Capital, have also received approval to list similar products. The SFC has provided conditional authorization letters to these ETF applications, subject to various conditions including fee payments and the Hong Kong Stock Exchange's (HKEX) listing approval. However, the SFC has yet to comment on the details of the virtual asset spot ETFs.
The ETFs will enable investors to gain exposure to actual Bitcoin rather than derivatives, thus offering a direct investment route into these assets through a regulated vehicle.
In the financial markets, Bitcoin (BTC) has shown a positive reaction, with Bitcoin trading above $66,500, a 2.8% increase over 24 hours.
QCP Capital, a Singapore-based digital assets trading house, believes that the approval of these ETFs will be bullish in the short term, unlocking some institutional demand during Asia trading hours. The firm notes that until now, participants wanting exposure to Bitcoin were limited to U.S. hours, but the new Asia-based alternative could attract institutional investors.
The news comes on the heels of the U.S. launching its own spot Bitcoin ETFs three months prior, which have already amassed around $12 billion in net inflows. Virtual asset spot ETFs in Hong Kong will reportedly introduce an "in-kind" subscription mechanism, enabling investors to buy ETF shares using Bitcoin directly.
