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Hong Kong regulators on Monday approved the launch of spot Bitcoin and ether The exchange-traded funds (ETFs) follow the introduction of these products to the market in the United States this year, asset managers said.
Bitcoin Shares were up about 3% at 7:11 a.m. ET after a sharp sell-off over the weekend.
Three ETF providers have received approval from Hong Kong’s Securities and Futures Commission (SFC).
China Asset Management said it has received regulatory approval to provide “virtual asset management services” and is “actively deploying resources to develop” spot Bitcoin and Ethereum ETFs. OSL Digital Securities will become the custodian of ChinaAMC Funds.
According to Harvest Global and Bosera International, its Bitcoin and Ethereum ETFs have also received SEC approval.
Hong Kong’s Securities and Futures Commission was not immediately available for comment when contacted by CNBC.
Although these asset managers have received approval for ETFs, they have not launched them yet.
Cryptocurrency trading has been effectively banned in mainland China following a massive crackdown on the industry in 2021.
However, Hong Kong has been slowly working towards establishing itself as a regulated cryptocurrency hub to compete with places like Dubai and Singapore. It is unclear whether mainland Chinese investors can invest in cryptocurrencies through ETFs.
The measures in Hong Kong come after U.S. securities regulators approved spot trading of a Bitcoin ETF that has attracted billions of dollars in inflows.
Bitcoin ETFs allow investors to gain exposure to the asset’s price movements without owning the underlying cryptocurrency. Many commentators say ETFs will bring more traditional investors into the cryptocurrency market.
Hong Kong will be one of the first regions in the world to approve an Ethereum ETF. The U.S. Securities and Exchange Commission has not approved such products, and asset managers told CNBC last week they did not expect regulators to do so.
—CNBC’s Yolande Chee contributed to this report.
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