Sokipiriye Dokubo
An anticipated regulatory green light could soon unlock one of the world’s largest financial markets for spot Bitcoin and Ethereum exchange-traded funds (ETFs).
As per a report by Bloomberg on Friday, Chinese asset management firms Harvest Fund Management, Bosera Asset Management, and HashKey Capital are on track to receive regulatory clearance for ETFs covering the top two digital assets. This development comes amid diminishing prospects for spot Ethereum ETFs in the U.S.
Hong Kong and its stock exchange (HKEX) hold pivotal roles as global financial centers and vital gateways to Chinese markets. HKEX ranks alongside the New York Stock Exchange (NYSE) as one of the world’s largest exchanges by market capitalization.
A Bitcoin ETF is essentially a managed product by an investment firm, which purchases and holds actual Bitcoin, with its price tied to the value of the Bitcoin held in the fund. Ethereum ETFs operate in a similar manner. These funds are listed on traditional stock exchanges, allowing investors to trade them like other stocks.
The anticipation surrounding HashKey Capital’s potential involvement in offering Bitcoin and Ethereum ETFs traces back to January when the Singapore-based company announced the raising of a $500 million fund dedicated to advancing blockchain technology initiatives.
Despite the Chinese government’s firm stance against individual Bitcoin mining operations and trading, cryptocurrencies and blockchain technology have found solid footing. Last year, China inaugurated a blockchain research hub in Beijing.
While American regulators have been slow in approving crypto-based ETFs, Asian markets— including Japan, South Korea, and Singapore—appear to be accelerating the availability of digital asset investment products.
With growing interest in Bitcoin and ETF approvals across various regions, including the United States, investors in Hong Kong are likely to eagerly embrace the latest investment opportunity.
Harvest Fund Management, Bosera Asset Management, and HashKey Capital have not yet responded to Decrypt’s request for comment.