The Hong Kong Securities and Futures Commission (SFC) has approved the first batch of Bitcoin and Ethereum spot ETFs today. Fund companies including Huaxia Fund (Hong Kong), CSOP International, Bosera International, and HashKey Capital have all announced their approval for the ETFs today. According to previous reports from Chinese media, the SFC plans to open trading for related ETFs on the 25th of this month, at the latest by the end of April.
(Previous Summary:
Bitcoin and Ethereum spot ETFs approved in Hong Kong! CSOP International’s application received principle approval from the SFC)
(Background Information:
Bloomberg: Hong Kong to “simultaneously approve” Bitcoin and Ethereum spot ETFs as early as April 15th)
Table of Contents:
Multiple fund companies announce approval
Expected to start trading by the end of April
Approval of Ethereum spot ETF is a milestone
Hong Kong is about to welcome its first locally issued Bitcoin and Ethereum spot ETFs. Huaxia Fund (Hong Kong), CSOP International, Bosera International/HashKey Capital have all announced this afternoon that they have received principle approval from the SFC to issue ETF products.
1. Huaxia Fund (Hong Kong) announced this afternoon that it has obtained approval from the SFC to provide virtual asset management services to investors. It plans to issue ETF products that can invest in Bitcoin and Ethereum spot. The company will work with OSL Digital Securities Limited and BOC International (UK) Limited, a leading custodian institution, to actively research and deploy this.
2. CSOP International announced that the SFC has given principle approval for CSOP to invest in two digital asset spot ETF products. These products will be facilitated through OSL Digital Securities Limited, the first licensed and regulated digital securities firm in Hong Kong. This will effectively address high margin requirements, price premiums caused by short positions, and rolling losses, resulting in a more accurate reflection of Bitcoin’s real-time value.
3. Bosera International and HashKey Capital stated today to The Block that the two jointly applied virtual asset spot ETFs have received conditional approval from the SFC. However, these two companies did not specify the meaning of conditional approval.
OSL has confirmed that its digital asset trading platform has been appointed as the first virtual asset trading platform and custodian partner for CSOP International. This is to support its upcoming first Bitcoin/Ethereum spot ETF, which has received principle approval in Hong Kong and is planned to be launched.
Bosera International and HashKey Capital stated that they will cooperate to launch Bitcoin and Ethereum spot ETFs, and adopt a physical subscription and redemption mechanism that allows investors to directly use Bitcoin and Ethereum to subscribe to ETF shares. The specific issuance schedule for the ETFs has not yet been disclosed by both companies.
However, it should be noted that the SFC has not formally announced the list of the first batch of approved ETFs.
Previously, Tencent Finance quoted sources to report that after the SFC approves the first batch of Bitcoin spot ETFs on the 15th, the Hong Kong Stock Exchange will need about two weeks to prepare for the listing of the products. However, the entire Bitcoin spot ETF project has already had detailed communication with the Hong Kong Stock Exchange in advance, and it is expected to be completed in approximately ten days.
The SFC plans to open trading for Bitcoin spot ETFs in Hong Kong on April 25th, at the latest by the end of April.
It is worth noting that the approval of the Ethereum spot ETF in Hong Kong has beaten the United States to the punch, marking a new milestone for the cryptocurrency industry. Adrian Wang, CEO of Metalpha, said that the upcoming Ethereum spot ETF may have great appeal.
Angela Ang, former regulatory official of the Monetary Authority of Singapore and senior policy advisor at blockchain intelligence company TRM Labs, also stated that Hong Kong’s approval of the Ethereum spot ETF ahead of the United States is an important milestone for Hong Kong’s journey towards becoming a leading cryptocurrency center.
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