Hong Kong Expected to Approve Bitcoin and Ether ETFs by Monday

Hong Kong is potentially on the verge of approving exchange-traded funds (ETFs) that directly invest in both Bitcoin and Ether, the two leading cryptocurrencies, possibly as soon as Monday, according to a Bloomberg report.

Among the expected issuers to receive approval for these spot-crypto ETFs are an international branch of Chinese asset manager Harvest Fund Management Co., as well as a collaboration between Bosera Asset Management (International) Co. and HashKey Capital. These insights were provided by individuals who preferred to remain anonymous due to the confidentiality of the information.

Both entities plan to launch their ETFs by the end of the month, contingent upon receiving the green light from the Securities and Futures Commission and finalizing listing details with Hong Kong Exchanges & Clearing Ltd., as per the sources.

Although the timing is subject to potential last-minute alterations, insiders suggest that regulatory approval could arrive as early as Monday. Representatives for the SFC and Harvest opted not to provide comments, while there was no immediate response from HashKey and Bosera to requests for comment. An HKEX spokesperson emphasized the exchange's commitment to supporting its ETF ecosystem and promised updates in case of new developments.

These anticipated approvals come in the wake of earlier reports indicating Harvest's readiness to launch a spot-Bitcoin ETF in Hong Kong. On April 9, the SFC granted clearance to Harvest and China Asset Management to offer virtual-asset related fund management services. China Asset Management declined to comment on the authorization.

The introduction of spot Bitcoin ETFs in the US on January 11 has contributed to a revival in crypto markets this year. Eleven ETFs have amassed approximately $59 billion in assets thus far, propelling the tracked token to a record high of $73,798 in mid-March. In just three months, BlackRock’s iShares Bitcoin Trust alone has attracted over $15 billion in net inflows.

Hong Kong is competing with Singapore and Dubai to position itself as a primary hub for digital-asset enterprises. The city introduced a regulatory framework for virtual-asset service providers in June 2023 and has approved platforms operated by HashKey Group and OSL Digital Securities.

Previously, regulators in Hong Kong had authorized the launch of futures-based crypto ETFs. The three listed products—CSOP Bitcoin Futures, CSOP Ether Futures, and Samsung Bitcoin Futures—have a combined asset value of around $170 million.

Although Hong Kong's crypto endeavors faced a setback last year with the JPEX scandal—an unlicensed crypto exchange implicated in an alleged $200 million fraud—authorities remain committed to attracting crypto entrepreneurs in a bid to restore the city's reputation as a global business hub.