Hong Kong has recently authorized the introduction of spot Bitcoin and Ethereum exchange-traded funds (ETFs) by four major financial entities, following approval from the Securities and Futures Commission (SFC). This move positions Hong Kong as a pioneer in offering a spot Ethereum ETF, surpassing the ongoing deliberations by the US SEC.

Several leading financial institutions, such as China Asset Management, Bosera Capital, and HashKey Capital Limited, have been granted permission by the Hong Kong SFC to launch Bitcoin and Ethereum spot ETFs. This milestone allows investors to directly invest in Bitcoin and Ethereum through these ETFs, enhancing accessibility to these digital assets.

Moreover, Harvest Global Investments disclosed that the SFC has preliminarily approved the establishment of Bitcoin and Ethereum digital asset spot ETFs, indicating a broader scope for digital asset investments. Han Tongli, CEO and CIO of Harvest International, emphasized the significance of this approval, highlighting Hong Kong's competitive edge in digital assets and the firm's commitment to fostering industry innovation.

Harvest's investment in these digital asset spot ETFs will be facilitated through OSL Digital Securities Co., Ltd., a licensed platform endorsed by the HK SFC. This strategic move aims to address issues like excessive margin requirements and price fluctuations, providing a more accurate representation of Bitcoin's real-time value.

Despite these advancements, mainland Chinese investors face limitations due to China's strict crypto ban, hindering their access to Hong Kong-listed Bitcoin and Ethereum ETFs. Regulatory restrictions prevent mainland Chinese funds from participating in cryptocurrency-related ETFs, underscoring the challenges posed by China's conservative stance on digital currencies.

Clarifications from ETF issuers in Hong Kong have clarified misconceptions surrounding Chinese investors' involvement in the Southbound Stock Connect program, which excludes digital currency products. This program, designed to facilitate cross-border investments between mainland China and Hong Kong, does not encompass cryptocurrency assets, aligning with China's cautious approach towards crypto risks.