Hong Kong SFC Grants Approval for Spot Bitcoin & Ethereum ETFs
China Asset Management, based in Hong Kong, has received approval from the Hong Kong Securities and Futures Commission to offer virtual asset management services. This move is significant as it demonstrates the increasing acceptance of cryptocurrencies by mainstream finance. In response to this approval, China Asset Management plans to launch spot Bitcoin and Ethereum exchange-traded funds (ETFs) for its investors, targeting not only Hong Kong but also Greater China, Asia Pacific, Europe, and the United States.
To make this possible, China Asset Management has partnered with OSL Digital Securities Co., Ltd., a major player in the virtual asset industry, and BOC International Prudential Trusteeship Ltd., a trusted custodian. Together, they will introduce spot Bitcoin and Ethereum ETFs, bridging the gap between traditional finance and the digital asset world.
China Asset Management’s parent company is a prominent player in China’s fund industry, managing an impressive $266 billion in assets as of December 2023. This strong foundation positions them well to enter the dynamic world of virtual asset management.
The approval of spot Bitcoin and Ethereum ETFs in Hong Kong is expected to have a global impact on markets. This development also adds momentum to US-based spot ETFs, which have already absorbed over 3 percent of Bitcoin’s circulating supply.
After a volatile weekend marked by significant sell-offs, the total crypto market cap has rebounded, increasing by nearly 5 percent in the past 24 hours to around $2.53 trillion. Both Bitcoin and Ethereum have experienced gains, with Bitcoin rising by 2.5 percent and Ethereum by 4.4 percent, following the news of spot ETF approval in Hong Kong.
As the fourth Bitcoin halving approaches later this week, anticipation is growing. Renowned crypto analyst Captain Faibik predicts that Bitcoin is on the verge of breaking out of a bullish pattern. Additionally, geopolitical tensions, particularly those arising from conflicts in the Middle East, are seen as positive drivers for Bitcoin and digital assets.