Hong Kong approves first spot Bitcoin ETF

Hong Kong has reportedly approved its first physical Bitcoin exchange-traded fund (ETF), and several issuers have announced that they have received permission to launch Bitcoin ETFs.

China Asset Management, Bosera Capital and other applicants posted on social media that they have received permission to list spot Bitcoin ETFs in Hong Kong. However, the Securities and Futures Commission (SFC) has not yet released an official list of approved issuers.

According to the post, the SFC has approved China Asset Management to partner with OSL and BOCI International to offer spot Bitcoin and Ethereum ETFs. Other approved issuers include Harvest Global Investments, HashKey Capital and Bosera Asset Management.

The news reflects the success of the U.S. spot Bitcoin ETF, which launched in January and quickly attracted more than $200 billion in trading volume. Hong Kong’s approval marks a milestone as the first jurisdiction in Asia to accept spot Bitcoin ETFs.

ETFs provide exposure to actual Bitcoin rather than derivatives, giving investors direct access to the asset. It also presents a regulated investment vehicle that mitigates some of Bitcoin’s risks.

By approving the ETF, Hong Kong solidifies its Bitcoin-friendly stance in its ongoing efforts to become a financial hub. Accessibly traded funds can stimulate significant retail and institutional demand.

However, an official SFC announcement is still pending. Some social media posts sharing the alleged endorsement have since been deleted. Uncertainty about permits may contribute to market uncertainty in the short term.

Nonetheless, the reported approval signals Hong Kong regulators’ willingness to satisfy surging investor appetite for Bitcoin. The launch of the ETF marks an important milestone in Bitcoin adoption and maturity in Asia.