In a move that marks a significant change in attitude towards the cryptobodies, the Hong Kong regulator approved today Monday the first ETFs bitcoin and Ethereum. The decision makes Hong Kong the first city in Asia to approve cryptocurrency ETFs, paving the way for their wider adoption as investment tools.
According to Reuters, Bosera Asset Management Hong Kong and China Asset Management have received approval from Hong Kong's Securities and Futures Commission (SFC) to circulation of ETFs. The move comes just three months after the launch of the first bitcoin ETFs in the US, which have already attracted significant investor interest, with net inflows of around $12 billion.
The approval of cryptocurrency ETFs in Hong Kong is considered a landmark for the market as it signals the growing acceptance of cryptocurrencies by institutional investors. The SFC has said the approval was given after "considering the potential risks and benefits" and that it will continue to monitor the market closely.
The development comes at a critical time for Hong Kong as the city seeks to maintain its position as a global financial center. Cryptocurrency adoption could help attract new investment and talent to the city, as well as boost its competitiveness.
