The Hong Kong has approved crypto ETF training via two platforms
The US had approved 11 BTC ETFs earlier this year
Mudrex is offering crypto ETF trading for Indian investors
Hong Kong has followed the US to approve ETFs for crypto assets this year
Photo Credit: Unsplash/ Annie Spratt
In a rather pro-crypto move, Hong Kong has greenlit the trading of Bitcoin and Ether Spot Exchange-Traded Funds (ETFs). With this move, traders in Hong Kong will get the chance to invest in Bitcoin and Ether via traditional stock markets. This eliminates the need for traders to enter the ecosystems of crypto exchanges just to engage with assets like BTC and ETH. Following the development, several members from India's crypto community have lauded Hong Kong's ‘landmark' decision.
The Hong Kong unit of Bosera Asset Management and China Asset Management have received regulatory approvals to offer Spot ETFs for BTC and ETH. The final approval was signed by the Hong Kong Securities and Futures Commission (SFC), said a report by Nikkei Asia on Monday, April 14. Spot ETFs track the current price of commodities and allow traders to get exposure to the current price of BTC without having to purchase and hold the asset.
Hong Kong is now Asia's first region that has legitimised cryptocurrency as an officially considerable investment tool. This move will also reduce the dependency of traders on the US' investment service offerings.
With the move, Hong Kong has become the second global location that has approved engagement with crypto ETFs for traders. In January this year, the US approved 11 BTC ETFs, marking a historic development for the crypto sector. The ETFs listed in the US had reportedly clocked $4.6 billion (roughly Rs. 38,065 crore) worth of shares trading hands within the first 24 hours itself.
As of March 31, the total inflows in BTC ETFs in the US reportedly breached the mark of $12 billion (roughly Rs. 1,04,298 crore) -- indicating investors' interest. ETH ETFs are still not approved in the US.
In India, members of the Web3 community lauded Hong Kong for setting a precedence for other Asian nations to expand experiments and trials with crypto assets.
“Chinese Real Estate and Equity markets have been under pressure since the Pandemic and haven't recovered. The local wealth is searching for other assets to deploy as can been seen from the record gold demand from investors,” Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, told Gadgets360. “The ETF approvals will provide a new avenue for Chinese capital to explore some exposure to crypto as an asset class and bodes well for the industry in the medium term.”
Praises for Hong Kong's decision have also been pouring on X.
#Breaking: Hong Kong approves first Bitcoin and Ethereum spot ETFs.
In January 2024, the US launched the first US-listed exchange-traded funds (ETFs) to track spot Bitcoin, recording $12 billion in net inflows.
ETFs provide exposure to crypto without actually owning crypto. It serves as a great way for people to experience crypto and then move their activities on-chain once they have the know-how and confidence.
The Hong Kong division of ChinaAMC said HKSFC has approved virtual asset ETFs for HashKey and ChinaAMC.
Harvest, another Chinese top-10 fund manager, gets conditional approval for spot-Bitcoin ETF.#HongKong#Bitcoin#ETFpic.twitter.com/XOfWOI6zA6
— Gul Gee, The Crypto Guru (@GulGeeOfficial) April 15, 2024
In March this year, crypto investment firm Mudrex launched spot BTC ETF investment service for Indian traders. The minimum amount for people to start investing in BTC ETFs on Mudrex stands at $5,000 (roughly Rs. 4.13 lakh) whereas the maximum amount could be $250,000 (roughly Rs. 2 crore).
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