According to Bloomberg, the Hong Kong Monetary Authority (HKMA) has authorized the listing of Bitcoin and Ethereum ETFs on the market.
The financial advisory and stock market firm announced that the launch of the new exchange-traded funds for both Bitcoin and Ethereum will take place next week in Hong Kong.
At this time, the HKMA has not disclosed any further details on the matter. However, as confirmed by Bloomberg, several people familiar with the matter aseguran that the regulator is ready to follow in the footsteps of the US Securities and Exchange Commission (SEC) and give the green light to crypto-asset cash-exchange-traded funds, which will begin trading on the stock exchange on April 30.
Since 2022, Hong Kong has been striving to become a financial hub for digital assets, so despite China’s ban on these assets, Hong Kong regulators have been modifying the region’s regulations to provide a clearer framework for crypto investors and users.
Hong Kong has also been fostering collaboration with cryptocurrency companies in an effort to position itself as a global crypto hub.
A way for Chinese investors to participate in the Bitcoin and Ethereum market
As reported by this media, the fund issuers approved in Hong Kong to offer their investors direct access to the main cryptocurrencies on the market, Bitcoin and Ethereum, are some of the largest managers in China.
Earlier this month, it was revealed that Harvest Fund and Southern Fund had received regulatory approval to offer Bitcoin and Ethereum investments through ETFs. Specifically, it was highlighted that the Hong Kong subsidiaries of both Chinese institutions were developing Bitcoin and Ether spot investment funds to provide their investors with new opportunities in the crypto economy and alternative asset allocation.
Experts believe that the approval and launch of these investment funds could unlock Billions of dollars from the Asian market into the crypto ecosystem, due to the possibility of facilitating the massive entry of investors into China.
Bloomberg ETF analyst James Seyffart reported that fees for the new Bitcoin and Ethereum ETFs to be listed in Hong Kong will be 0,30%.
A global hub for digital asset innovation
With the launch of these investment funds, Hong Kong will also become Asia's first city to offer cryptocurrency spot ETFs, a fact that undoubtedly further reinforces its status as a digital asset hub.
Last November, Hong Kong’s financial authority had said it was open to listing Bitcoin and Ethereum ETFs, and then in March it underlined its readiness to accept the in-kind redemption model in these investment funds. This model will allow investors to directly exchange the underlying assets of the funds, in bitcoin and ether, for the fund’s shares, and vice versa.
Continue reading: Hong Kong emerges as Asia's cryptocurrency leader
