Several Chinese fund companies are competing to become the first issuers of cryptocurrency spot ETFs in Hong Kong after the Securities and Futures Commission (SFC) permitted such products last year. Major players including Bosera Funds (International), Harvest Global Investments, and China Asset Management (Hong Kong) have recently disclosed their latest regulatory milestones.
Key Developments Among Competing Fund Companies
Bosera Funds (International) Conditional Approval
Bosera Funds (International) announced that its joint application with HashKey Capital for two virtual asset spot ETFs has received conditional approval from Hong Kong's SFC. The partners plan to launch both:
- Bitcoin (BTC) spot ETF
- Ethereum (ETH) spot ETF
Harvest Global Investments Receives In-Principle Approval
Harvest Global Investments revealed its collaboration with OSL Digital Securities, having obtained:
- In-principle approval from regulators
- Plans to introduce dual cryptocurrency spot ETFs (BTC and ETH)
- OSL will serve as the virtual asset trading and custodial partner
China Asset Management (Hong Kong) Prepares Launch
China Asset Management (Hong Kong) confirmed:
- SFC authorization to provide virtual asset management services
- Partnership with OSL Digital Securities and trustee BOCI-Prudential
- Active research into BTC/ETH spot ETF product structures
Market Context and Significance
👉 Why Hong Kong's crypto ETF approval matters for Asian investors
- This marks Hong Kong's first potential physical-backed crypto ETFs
- Current listed products (3 existing ETFs) only track futures contracts
- Unlike the US which approved Bitcoin spot ETFs (January 2024), no jurisdiction has yet approved Ethereum spot ETFs
OSL's Strategic Role
OSL Digital Securities emphasized its critical infrastructure role:
- Providing secure trading environments for ETF issuers
- Managing underlying assets with institutional-grade custody
- Ensuring compliance with SFC's strict virtual asset regulations
Current Regulatory Status
- SFC website shows no finalized ETF product approvals yet
- All disclosures indicate ongoing review processes
FAQ: Hong Kong's Crypto ETF Developments
Q: What makes spot ETFs different from existing crypto futures ETFs?
A: Spot ETFs hold actual cryptocurrencies, while futures ETFs track derivative contracts—this reduces contango costs and provides direct exposure.
Q: When might these ETFs begin trading?
A: Industry experts estimate Q3 2024 launches if approvals are finalized, though timelines depend on SFC review completion.
Q: Will these ETFs be available to retail investors?
A: Yes, but purchasers must comply with Hong Kong's virtual asset risk assessment requirements for intermediaries.
Q: How does this compare to US Bitcoin ETFs?
A: Similar structure, but Hong Kong may become the first market with Ethereum spot ETFs—a significant differentiator.
Q: What custody solutions are being used?
A: All disclosed partnerships involve licensed VA providers like OSL meeting SFC's 95% cold storage mandate.
Q: Could this attract more crypto funds to Hong Kong?
A: Analysts predict these ETFs may position Hong Kong as Asia's digital asset management hub, competing with Singapore.
👉 Institutional crypto adoption trends in 2024
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4. **FAQ section** addressing probable investor queries
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