Hong Kong greenlight Spot Bitcoin and Ethereum ETF applications

Hong Kong has approved applications for Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs). This is the second Bitcoin spot ETF, following the US Securities and Exchange Commission’s approval of 11 spot BTC ETFs in Q1 2024.

Additionally, this is the first spot Ethereum ETF to be approved, as the US, which previously approved the first Bitcoin ETF, has not yet given the green light to ETH ETFs.

The first Bitcoin futures ETF was approved in October 2021, followed by the first crypto spot ETFs for retail markets on January 10, 2024. 

These ETFs allow investors to participate in the rise or fall  of cryptocurrency values without buying and holding the actual cryptocurrency.

Hong Kong is positioning itself as a global crypto hub by taking a balanced approach to safeguard investors while promoting a crypto-friendly environment. 

The Securities and Futures Commission (SFC) in Hong Kong has issued warnings against unlicensed crypto exchanges to highlight the risks for investors and the possibility of enforcement action.

Hong Kong has recently given the green light to its first retail cryptocurrency exchanges, HashKey Exchange and OSL. These exchanges have obtained licenses to cater to retail investors seeking trading services.

Additionally, Hong Kong recently hosted the latest Web3 Festival in April, attracting global crypto players like Dfinity and OKX among others. 

The government showed strong support for the event by having its officials present to showcase the potential of the Web3 space for the region and the world.

After a significant fall in the price of bitcoin to $65,000, the price of bitcoin has only gained 3.2% and with the halving in a few days, the approval could contribute to an upward surge in the price of bitcoin.

Read also; El Salvador’s New Hilton Hotel to use bitcoin-backed tokenized debt