Fix, Hong Kong Approves Spot Bitcoin ETF

Hong Kong's financial watchdog approved Spot's Bitcoin ETF. (Photo; Doc. CoinBulteni)

JAKARTA - Hong Kong has made history by becoming the second country in the world to approve Exchange Trade Funds (ETF) for Bitcoin (BTC) and the first for Ethereum (Ether) in 2024. The move follows in the footsteps of the United States, which first welcomed this investment vehicle earlier this year in January, amplifying Hong Kong's position as a crypto-friendly country.

On April 15, 2024, two companies that have long awaited a decision from the Hong Kong Securities and Futures Commission (SFC) announced approval of their app. This approval allows them to offer BTC and Ether spot ETFs to their retail customers, ensuring compliance with local regulations.

China Asset Management, a leading financial services company in China with assets under management of US$271 billion (around Rp. 4,294 trillion), expressed their joy at the approval of the SFC. This approval allows the company to offer retail asset management services, in collaboration with OSL and BOCI International, two licensed digital asset trading platforms in Hong Kong.

Harvest Global Investments, another important player, also received SFC approval for BTC and Ether's spot ETFs. The company, with the principle approval of Hong Kong's market watchdog, intends to collaborate with OSL to introduce new investment products, effectively addressing high margin requirements.

Meanwhile, Asset Management and HashKey Capital Bosera also received conditional approval from SFC for their ETF spot submission. These approvals include ETF's HashKey Bitcoin Bosera and HashKey Ether ETF Bosera, offering investors the opportunity to subscribe directly using BTC and Ether.

The identification of Spot ETFs Virtual Assets not only provides investors with new asset allocation opportunities but also strengthens Hong Kong's status as an international financial hub and hub for virtual assets, Bosera said, highlighting the importance of this development strategically.

Following the approval of the ETF in Hong Kong, the crypto market is experiencing revival. Data from CoinMarketCap showed an increase in global market capitalization by 3.91% in 24 hours, reaching 2.43 trillion US dollars. Bitcoin, after briefly dropping below $62,000 due to geopolitical tensions, bounced back to $66,000, indicating market resilience.

Ether, who was similarly affected, briefly fell below $3,100 before recovering to $3,239, indicating investor confidence. Altcoins like Solana (SOL) and Dogecoin (DOGE) are also recovering, signaling a wider market recovery post-fluctuation weekend.

The Bitcoin and Ethereum ETF approvals in Hong Kong not only expand investment opportunities but also show regulatory acceptance and market adaptation in the growing crypto landscape. Investors are advised to monitor market dynamics and make the right decisions amid market fluctuations.