Bitcoin Bull Run Resumes? Hong Kong Approves Bitcoin and Ethereum ETFs

The cryptocurrency market has started the new week on a positive note. The Hong Kong securities regulator on Monday approved applications by multiple fund managers in the region to launch Bitcoin and Ethereum spot exchange-traded funds (ETFs).

The asset managers that received approval include China Asset Management, Harvest Global Investments, Bosera Asset Management, and HashKey Capital. These four entities manage a combined over $700 billion in assets, publicly available data shows.

While China Asset Management received direct approval to launch Bitcoin and Ethereum ETFs, Harvest Global and Bosera received in-principle approval for similar products. Bosera is expected to team up with HashKey Capital for the launch, with both partners aiming to leverage each other’s expertise to deliver the new product.

Following the approval, the funds may go live in the coming days and weeks. However, the companies are yet to disclose an official rollout date.

Hong Kong Follows US Footsteps and More

The move by the Hong Kong Securities and Futures Commission (SFC) to approve the region’s first spot ETFs comes less than three months after the United States did the same.

Similar to the spot ETFs launched in the United States earlier this year, the proposed funds in Hong Kong will allow both retail and institutional investors to get exposure to the crypto market without necessarily holding the underlying assets. ETF issuers typically partner with a custodian to hold the assets on behalf of customers. Investors, on the other hand, can simply trade their shares as they would stocks on a regulated exchange.

However, it is noteworthy that Hong Kong has gone one better than the U.S. market. While the United States Securities and Exchange Commission (SEC) has delayed approving a spot-based Ethereum ETF, Hong Kong has given a green light to the crypto asset, potentially paving the way for the region to attract more capital from investors on that front.

Will Hong Kong’s Crypto ETFs Resume the Bitcoin Bull Run?

The crypto market has responded favorably to the crypto ETFs new from Hong Kong. The total market capitalization rose by 3%, with Bitcoin, Ethereum, and other major assets seeing significant gains early Monday.

The market rise evidently reflects optimism that the latest development will allow more capital to flood the market. Yet, there is no way to guarantee such an outcome or that the Hong Kong-based ETFs will have a similar impact on Bitcoin’s price as their U.S. counterparts.