Hong Kong nod for bitcoin, ether ETFS

Hong Kong’s securities regulator has granted conditional approval to start the city’s first spot-bitcoin and ether exchange-traded funds (ETFS), firms involved said, positioning it as a leader in Asia for the use of cryptocurrencies as investment tools.

Chinaamc (HK), the city’s unit of China Asset Management, said in a statement it had received regulatory approval from the Securities and Futures Commission of Hong Kong (SFC) for the provision of virtual asset management services.

The company is “actively deploying resources in the development of spot Bitcoin ETF and spot Ethereum ETF”, it said.

This will be done in partnership with Boci-prudential Trustee Limited, a joint venture of the fund management arm of Bank of China (HK) and the British multinational insurance firm.

Two other fund managers – the Hong Kong units of Harvest Fund Management and Bosera Asset Management – also said they had received conditional approvals from the SFC, Bloomberg reported.

The SFC declined to comment on individual applications.

OSL Digital Securities will provide custody services to China AMC and Harvest to ensure trading safety, the licensed digital assets platform announced.

“This collaboration marks a critical advancement in the financial landscape of the region,” OSL said in a statement.

Hong Kong has been trying to edge ahead as a regional digital asset hub as its international financial centre status has been dented by political turmoil in recent years.