Hong Kong gives initial approval to Bitcoin and Ether ETFs

Hong Kong has given the green light for its first bitcoin and ether exchange traded funds (ETFs). This means people can invest in these cryptocurrencies like they do with stocks. Some companies from China will soon launch these ETFs in Hong Kong.

Harvest Fund Management and Bosera Asset Management, two companies in Hong Kong, got approval from the Hong Kong Securities and Futures Commission (SFC) to start these ETFs. Another company, China Asset Management (HK), also got approval to offer services for managing virtual assets like bitcoin and ether.

The SFC gives a conditional approval when an ETF application meets its basic requirements but needs to fulfill other conditions like paying fees and getting approval from the Hong Kong Stock Exchange. The SFC didn’t give details about these new ETFs.

This move comes after the U.S. launched its own bitcoin ETFs, which have attracted a lot of money from investors. Even though China bans cryptocurrency, Hong Kong is trying to become a global hub for digital assets.

Bosera Asset Management (International) said this new ETF will give investors more options and strengthen Hong Kong’s position as a financial hub. They will work with HashKey Capital, a company in Hong Kong, to launch the product.

These ETFs in Hong Kong will let people buy shares using bitcoin or ether directly, which is a new way to invest in cryptocurrencies.

Chinese financial companies want to be part of the cryptocurrency market in Hong Kong because the Chinese stock market hasn’t been doing well. This approval helps them meet the demand from investors and promote innovation in the industry.

Bitcoin’s value has gone up a lot this year, hitting a record high of $73,803 in March, although it was around $66,000 on Monday.

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