Hong Kong is poised to approve its first batch of spot Bitcoin and Ethereum exchange-traded funds (ETFs) as soon as Monday — just days before the Bitcoin network is set to slash the supply issuance rate of BTC.
According to Bloomberg’s April 12 report, Chinese asset management companies Harvest Fund Management, Bosera Asset Management, and HashKey Capital are expected to get soon the regulatory blessing for ETFs for the two leading cryptocurrencies.
Bloomberg, citing two people familiar with the matter, reported that spot Bitcoin (BTC) and ether (ETH) exchange-traded funds could be approved as early as Monday. Earlier this week, reports surfaced that the Hong Kong securities regulator accelerated the approval process for four spot Bitcoin ETFs. The expected regulatory nod would come before the April 20 Bitcoin halving.
Hong Kong and the Hong Kong Stock Exchange (HKEX) are important international financial hubs and key gateways to Chinese markets. HKEX ranks alongside the New York Stock Exchange (NYSE) among the world’s biggest exchanges by market capitalization.
After the Hong Kong regulator approves the spot BTC ETFs, the ETF listing procedures on the Hong Kong Stock Exchange will take about two weeks to finalize. According to Bloomberg, this means the ETF products could debut by the end of April.
Spot Bitcoin ETFs allow investors to gain exposure to the benchmark crypto without the hassle of owning it themselves. After years of delays and denials, the U.S. Securities and Exchange Commission (SEC) finally greenlighted applications for a handful of spot Bitcoin ETFs in January 2024. Spot ether ETFs would work the same way, with the ETH funds being listed on traditional stock exchanges to allow new investors to buy and trade the coin indirectly.
While the US OK’d spot-Bitcoin ETFs, supercharging Bitcoin’s run-up to all-time highs near $74K, it hasn’t yet greenlighted Ethereum ETFs. Notably, the odds of the U.S. SEC approving spot ether ETF vehicles by May have dwindled amid efforts by the regulator to designate ETH as a security.
Hong Kong greenlighting the first spot market Bitcoin ETFs could catalyze BTC’s rally post-halving as they will add to the institutional demand and massive inflows created by high-profile U.S. ETF issuers like BlackRock and Fidelity.
If approved, Bitcoin and Ethereum ETFs could bring greater legitimacy and trust to crypto in Hong Kong, potentially drawing in billions as Chinese investors rush to get a piece of these innovative financial products. This could set the stage for Hong Kong to become a new hub for crypto ETFs.
Besides the historically bullish halving, industry experts believe Hong Kong crypto ETF approvals could be a further positive catalyst, potentially sparking a rally to the $100,000 milestone and beyond.
Alternative coins are back in alignment with Bitcoin according to a recent observation made by…
Solana has surged to $100 for the first time in the last six months. It’s…
After months of weakness, DOGE has finally entered an accumulation phase, currently rebounding and preparing…
Cardano creator Charles Hoskinson is turning up the heat on the project’s critics, delivering a…
The crypto market is surging after $400 billion flowed in 3 days, with assets seeing…
Optimism is rocketing across the Cardano community after one cryptocurrency founder voiced strong confidence that…