Hong Kong Securities and Futures Commission Gives Green Light to ETFs for Bitcoin and Ethereum Trading

China Asset Management, based in Hong Kong, has announced that it has obtained approval from the Hong Kong Securities and Futures Commission to offer virtual asset management services to investors. This approval allows the company to issue spot Bitcoin and Ethereum exchange-traded funds (ETFs) to investors in various regions including Hong Kong, Greater China, Asia Pacific, Europe, and the United States. China Asset Management has partnered with OSL Digital Securities Co., Ltd. and BOC International Prudential Trusteeship Ltd. to deploy these ETFs. The parent company of China Asset Management is one of the largest fund companies in China, managing over $266 billion in assets as of December 2023.

The approval of these spot BTC and Ether ETFs in Hong Kong has had a direct impact on Bitcoin and Ethereum prices. After a volatile weekend that led to significant cryptocurrency liquidation, the total crypto market cap has increased by nearly 5 percent in the past 24 hours, reaching approximately $2.53 trillion. Following the announcement of spot ETF approval in Hong Kong, Bitcoin and Ethereum prices have risen by 2.5 percent and 4.4 percent respectively in the past 24 hours.

This approval in Hong Kong adds to the influence of US-based spot ETFs, which have already gathered over 3 percent of Bitcoin’s circulating supply. With the upcoming fourth Bitcoin halving and geopolitical tensions in the Middle East, there is optimism among analysts that Bitcoin will experience a bullish breakout in the near future.