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Spot Ethereum and Bitcoin ETFs could get the green light in Hong Kong as soon as Monday, less than a week before Bitcoin halves—a move expected to precede a BTC price rally.
According to a Friday report from Bloomberg, Chinese asset management firms Harvest Fund Management, Bocera Asset Management and Hashkey Capital are expected to receive ETF regulatory approval for the top two digital assets. The news comes as the outlook for Ethereum ETFs in the US is fading
Hong Kong and the Hong Kong Stock Exchange (HKEX) are key global financial centers and gateways to major Chinese markets. The HKEX is one of the world's largest exchanges by market capitalization, along with the New York Stock Exchange (NYSE).
A Bitcoin ETF is a product managed by an investment firm that buys and holds actual bitcoins, and its value is linked to the value of the bitcoins in the fund. Ethereum ETFs work the same way. The funds are listed on a traditional stock exchange, and investors trade the ETF like any other stock.
HashKey Capital is expected to be one of the firms set to offer Bitcoin and Ethereum ETFs after the Singapore-based firm announced a $500 million fund raising focused on blockchain technology initiatives.
The Chinese government has taken a strong stance against individual Bitcoin mining operations and transactions. However, cryptocurrencies and blockchain technology are doing relatively well. Last year, China launched a blockchain research center in Beijing.
While US regulators have been dragging their feet on approving crypto-based ETFs, Asian markets – including Japan, South Korea and Singapore – are ramping up the offering of digital asset investment products.
The growing interest in Bitcoin and the approval of ETFs in various regions, including the United States, will lead investors in Hong Kong to adopt the latest investment product.
Harvest Fund Management, Bocera Asset Management and Hashkey Capital did not immediately respond to Decrypt's request for comment.
Edited by Ryan Ozawa.
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