Hong Kong is on the brink of approving spot exchange-traded funds (ETFs) for bitcoin and ether, potentially by Monday, Bloomberg reports. This anticipated approval is poised to influence the cryptocurrency markets in the near term. The ETFs, if launched, will enable investors to trade bitcoin and ether on regulated platforms, enhancing the legitimacy and stability of investing in cryptocurrencies.
Bloomberg’s sources suggest that if the Hong Kong Exchanges & Clearing can finalize the listing details promptly, trading could commence by the end of April. Harvest Global Investments and Bosera Asset Management, in collaboration with HashKey Capital, are frontrunners in receiving the first approvals for these spot cryptocurrency ETFs. This move could cement Hong Kong’s position as a major hub for digital assets in Asia, particularly if it leads to a successful market response similar to the U.S., where the approval of bitcoin ETFs in January triggered a price rally, pushing bitcoin’s value to $73,000.
However, unlike in the U.S., where ether ETFs have not yet been approved, Hong Kong might take the lead in this area as well. The city’s market regulator, the Securities and Futures Commission (SFC), has not commented on the developments. Similarly, inquiries to Harvest Global Investments, Bosera Asset Management, HashKey Capital, and HKEX received no immediate response.
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development
Ether ETF Update
The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the application for an Ether ETF. A new deadline is set for May 23.
Despite this, analysts remain cautiously optimistic, estimating a 60% chance of eventual approval. These delays and the ongoing review process indicate that the SEC is maintaining a cautious approach towards the approval of Ether ETFs. It reflects the complexities involved in integrating such products into the financial system.
