16.2 C
London
Saturday, May 25, 2024
HomeBlockchain/BitcoinThree Chinese Firms Gets Nod to Launch Bitcoin and Ethereum ETF in...

Three Chinese Firms Gets Nod to Launch Bitcoin and Ethereum ETF in Hong Kong

Date:

Related stories

Rafah crossing remains shut as Gaza food aid rots

SInce 7 May, no aid trucks have entered Gaza via Rafah, but Egypt reached a deal with Israel to allow some UN aid trucks to enter via Kerem Shalom

Israel responds to ICJ ruling to halt Rafah assault by massacring dozens

The World Court ruled Israel must immediately halt its assault on Rafah as part of the ongoing case accusing Tel Aviv of genocide

Hong Kong has taken a significant step by granting initial approvals to three Chinese asset managers to launch exchange-traded funds (ETFs) backed by spot virtual assets such as Bitcoin and Ether.

This initiative is part of Hong Kong’s ongoing strategy to integrate digital assets into its financial ecosystem and attract global fintech innovation.

Harvest Global Investments Ltd., Bosera Asset Management (International) Co. Ltd., and China Asset Management (Hong Kong) Ltd., all subsidiaries of leading Chinese mutual fund companies, received the go-ahead in principle from the SFC.

Each company announced these approvals separately on Monday, underscoring a coordinated effort to advance Hong Kong’s digital economy.

The introduction of these Hong Kong ETFs marks a milestone as the first of their kind in Asia to be backed by physical cryptocurrencies rather than derivatives. This development follows the successful launch of similar products in the U.S., which have seen substantial investor interest.

The approval process included rigorous conditions set by the SFC, ensuring the ETFs meet the high standards required for operation within Hong Kong’s financial system. These conditions include fee payments, filing necessary documents, and obtaining listing approval from the Hong Kong Stock Exchange (HKEX).

In a statement, Harvest Global Investments’ CEO and CIO, Han Tongli, highlighted the role of this initiative in enhancing Hong Kong’s systemic advantages as an international financial centre and its foresight in financial technology innovation.

Three Chinese Firms Gets Nod to Launch Bitcoin and Ethereum ETF in Hong Kong

Han Tongli

“The introduction of virtual asset management services will enable Harvest Global Investments to provide a comprehensive management solution that includes various cryptocurrencies and digital assets. This initiative not only meets investors’ demands for high-growth assets but also allows them to participate in the rapidly evolving opportunities in blockchain and digital assets, offering another key to entering the future world of AI technology,”

said Han Tongli.

Additionally, Bosera Asset Management announced a partnership with Hong Kong-based HashKey Capital to launch their product, introducing an “in-kind” subscription mechanism allowing investments directly with Bitcoin or Ether.

These developments are set against increasing interest in cryptocurrencies, with Bitcoin reaching an all-time high of US$73,803 (HK$577,755). They are expected to significantly contribute to Hong Kong’s reputation as a leader in the digital asset space.

Featured image credit: Edited from Freepik

The post Three Chinese Firms Gets Nod to Launch Bitcoin and Ethereum ETF in Hong Kong appeared first on Fintech Hong Kong.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories