Hong Kong Securities and Futures Commission Approves Cryptocurrency ETFs by HashKey Capital, Bosera Asset, and China Asset Management
Investment management firms HashKey Capital, Bosera Asset, and China Asset Management have received approval from the Hong Kong Securities and Futures Commission (SFC) to offer virtual asset management services to investors. This approval marks a significant advancement in the integration of cryptocurrency investment products into Hong Kong’s financial landscape.
Regulatory Approval for Innovative Cryptocurrency ETFs
HashKey Capital and Bosera Asset have obtained conditional approval from the regulatory authorities for their investment products. The Bosera HashKey Capital Spot Bitcoin ETF and Bosera HashKey Capital Spot Ethereum ETF will reflect the prices of Bitcoin and Ethereum, respectively, and will utilize a physical subscription process. This allows investors to subscribe to ETF shares directly using Bitcoin and Ethereum. These newly approved investment products are expected to be listed on the Hong Kong Stock Exchange.
Bosera International has been appointed as the fund manager for the aforementioned ETFs, with HashKey Capital serving as the deputy fund manager.
Comprehensive Approval for China Asset Management
Meanwhile, China Asset Management (Hong Kong) has received full approval from the SFC. In collaboration with digital asset platform developer OSL Digital Securities and custodian BOCI Prudential, the firm is set to provide retail asset management services related to spot cryptocurrency ETFs. They plan to launch ETF products supporting investments in spot Bitcoin and Ethereum.
OSL Digital Securities will serve as the exclusive trading and custody partner for China Asset Management’s newly launched spot Bitcoin and Ethereum ETFs in Hong Kong.
Additional Regulatory Approvals
Furthermore, Harvest Global Investments announced that its two spot cryptocurrency ETFs have also received principle approval from the regulatory body. These ETFs, in collaboration with OSL, aim to effectively address issues such as excessive margin requirements.
Hong Kong’s Embrace of Cryptocurrency Amid Mainland Crackdown
Contrary to the broader crackdown on cryptocurrency trading and mining in neighboring Mainland China, Hong Kong warmly welcomed firms focused on cryptocurrencies last year. In June 2023, the city officially launched a licensing regime for cryptocurrency trading platforms, allowing licensed exchanges to provide retail trading services. To date, Hong Kong has issued licenses to two platforms—HashKey Exchange and OSL—signaling a progressive stance towards the acceptance and regulation of digital assets.
