CNBC: Hong Kong authorities have given the green light to launch ETFs on Bitcoin and Ethereum spot

Hong Kong regulators gave the green light yesterday to the launch of ETFs on spot Bitcoin and Ethereum, according to asset managers, a move similar to the one at the beginning of the year in the United States, writes CNBC.

According to the American publication, three ETF providers have received approval from Hong Kong's Securities and Futures Commission (SFC).

ChinaAMC said it has received approval to provide "virtual asset management services" and is "allocating resources to develop" a spot ETF on Bitcoin and Ether. OSL Digital Securities will be the custodian for ChinaAMC. Harvest Global and Bosera International have also received SFC approval for Bitcoin and Ether ETFs, according to the two companies.

According to CNBC, these asset managers have so far received the green light to launch ETFs, but have yet to launch them.

Crypto trading is effectively banned in mainland China from 2021. However, Hong Kong is trying to transform itself into a regulated crypto hub to compete with places like Dubai and Singapore. For now, it is unclear whether mainland Chinese investors will be allowed to invest in cryptocurrencies through ETFs, according to the said media trust.

In January, the US market regulator approved the launch of spot Bitcoin ETFs, which facilitated billions of dollars inflows into the world's most heralded cryptocurrency.

Still, even though the approval of ETFs in Hong Kong may be a new catalyst for Bitcoin, the market should not expect flows close to the size driven by spot funds in the United States, Vetle Lunde, senior analyst at K33, said last week Research, cited by Coindesk.

ETFs allow investors to gain exposure to asset price movements without owning the cryptocurrency itself. Voices in the financial market claim that ETFs will bring more traditional asset investors into the crypto market. There are only spot Bitcoin ETFs in the United States, so Hong Kong may be the first place in the world to see an Ethereum ETF if and when it launches, according to CNBC.