Hong Kong Bitcoin ETF Expected to Launch on Monday With Huge Potential

Key Points:

• Hong Kong Bitcoin ETFs could be launched on Monday, signaling a shift in crypto investment.
• Harvest Fund Management and Bosera Asset Management are poised to launch these ETFs pending regulatory clearance.
• Approval could tap into significant demand from Chinese investors via the Southbound Stock Connect program.

Hong Kong is poised to potentially approve exchange-traded funds (ETFs) investing directly in Bitcoin and Ether, the two leading cryptocurrencies, as early as Monday, sources told Bloomberg. The move could mark a significant development in the region’s crypto investment landscape.

Read more: Bitcoin Spot ETF vs Futures ETF: Differences To Make The Right Investment Choice

Hong Kong Bitcoin ETF Launching Soon

Among the issuers expected to receive approval for these spot-crypto ETFs is an international arm of Chinese asset manager Harvest Fund Management and a partnership between Bosera Asset Management and HashKey Capital.

These firms aim to launch the ETFs by the end of the month, pending approval from the Securities and Futures Commission and finalization of listing details with Hong Kong Exchanges & Clearing Ltd.

Reports earlier in the week hinted at Harvest’s potential to launch a spot Bitcoin ETF in the city. The approval could unlock substantial demand, estimated at up to $25 billion, from Chinese investors through the Southbound Stock Connect program, which facilitates access to eligible shares listed in Hong Kong for qualified mainland Chinese investors.

Potential Approval to Unlock Demand from Chinese Investors

Although cryptocurrency trading is banned in mainland China, offshore Chinese financial institutions have shown interest in participating in crypto asset development in Hong Kong.

The anticipated approvals for Hong Kong Bitcoin ETFs come on the heels of the introduction of spot Bitcoin ETFs in the U.S. on Jan. 11, which contributed to a resurgence in crypto markets globally. The prospect of spot-based Bitcoin ETFs in the U.S. and potential inflows have added momentum to Bitcoin‘s rally to new all-time highs this year.

If approved, these Hong Kong Bitcoin ETFs could provide investors in Hong Kong with regulated exposure to the volatile yet potentially lucrative cryptocurrency market.