Hong Kong’s SFC approves first spot BTC and ETH ETFs
Hong Kong's Securities and Futures Commission (SFC) has approved the first spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund, the Business Times reports. Thus, Hong Kong tends to become Asia's first region to accept cryptocurrencies as an investment instrument.
What are ETFs?
In short, an exchange-traded fund (ETF) is an investment instrument that comprises a basket of various assets, such as stocks, commodities, bonds, currencies, futures, and (not all the ETFs) cryptocurrencies, which can be purchased or sold in a single trade on a stock exchange. ETF shares constitute partial ownership of a portfolio run by fund managers, who may use different strategies like passive or active investing. There are many different types of ETFs for virtually any asset class, including stocks, bonds, real estate, and cryptocurrencies.
Market Reaction
Hong Kong’s SFC has not made an official announcement yet, but the Hong Kong unit of Bosera Asset Management and China Asset Management said they had already received regulatory approval.
Does this piece of news have an impact on the crypto world? It does. The timeline of the launch has not been disclosed yet, but the market has already started reacting.
- After the Bitcoin (BTC) price dropped by 7% on Saturday, April 13, to $62,000, by Monday morning, against the backdrop of the news, Bitcoin began to grow again and currently the price reaches $66,616.
- The price of Ethereum(ETH) fell over 9% to $2,923 last Saturday, but the latest news helped it recover and now the price has grown to $3,255.
We will keep abreast of news, so stay with us! DISCLAIMER: always do your own research before trading, we do not give any financial advice!
Read more our articles on ETFs and on China’s crypto regulations:
- How ETFs Could Shape BTC's Price Landscape
- 5 Bitcoin ETFs to Look Out For in 2024
- Navigating the Chinese Crypto Market: Top 5 Projects.
