Hong Kong: approval of spot ETFs on Bitcoin and Ether on the horizon

According to Bloomberg, there is a possibility that Hong Kong will approve spot Bitcoin and Ether ETFs as early as Monday. This prospect has generated high expectations, considered one of the most significant events of change in the cryptocurrency market in the near future.

Let’s see all the details below. 

Potential new phase for the adoption of Bitcoin and Ether in Hong Kong: spot ETF

As anticipated, Bloomberg reported that Hong Kong could authorize spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds as early as Monday, citing sources familiar with the matter. 

If the agreements on the listing are finalized in time with Hong Kong Exchanges & Clearing, it is expected that these products could be launched by the end of the month. 

According to the report, Harvest Global Investments, a major asset management company in China, which is said to have been the first to apply for a spot Bitcoin exchange-traded fund (ETF), could be among the first to obtain approvals. 

Together with a product from Bosera Asset Management (International) Co. and HashKey Capital.

The possible approval by Hong Kong of these ETFs is considered one of the most significant events for the cryptocurrency market and could consolidate Hong Kong’s position as the main center for digital assets in Asia.

Bitrace provides blockchain training to the police forces of Hong Kong

Bitrace, a company specialized in blockchain data analysis, has organized training courses on on-chain fund monitoring for law enforcement agents in Hong Kong.

This initiative is part of the company’s corporate social responsibility framework and aims to enhance law enforcement’s understanding of blockchain technology, considering Hong Kong’s growing momentum in the crypto economy.

According to local media sources, training sessions have been conducted for the Cyber Security and Technology Crime Bureau (CSTCB) and the Commercial Crime Bureau (CCB). 

Isabel, CEO of Bitrace, emphasized the importance of collaboration between Web3 companies and authorities.

In particular, highlighting the need to provide law enforcement agents with the necessary skills to investigate crimes related to cryptocurrencies.

Isabel has also tackled the challenges related to understanding crypto-criminal methods by regulatory agencies and has emphasized the importance of protecting user funds security. 

By promoting a safer Web3 environment through partnerships with regulatory agencies. Capacity-building sessions addressed various aspects of cryptocurrency-related crimes, providing insights into real cases. 

Furthermore, illustrating how cryptographic funds are used in criminal activities using the BitracePro platform for monitoring and analyzing cryptographic resources.

ZA Bank approaches the world of stablecoins

ZA Bank, the leading digital lender in Hong Kong, has announced its intention to offer specialized services to stablecoin issuers in the city-state.

The bank is currently negotiating with eight potential clients to create dedicated accounts for the liquidity reserves intended to support their stablecoin. 

However, this service will only be available to customers admitted to the regulatory sandbox of the Hong Kong Monetary Authority (HKMA), launched in March 2024 to assess potential stablecoin issuers.

The CEO of ZA Bank, Devon Sin, emphasized the importance of adapting banking services to the unique needs of stablecoin issuers, contributing to the growth and stability of the Web3 economy.

This movement aligns with Hong Kong’s ambition to become a global hub for digital resources, with policies that promote growth and protect investors in the sector. 

ZA Bank has already demonstrated its commitment to supporting the digital asset sector, with services such as token-fiat currency conversions and fiat withdrawals for customers with digital assets on authorized exchanges.

This approach has led to significant success for ZA Bank, which has processed transfers for over 1 billion dollars from over 100 digital assets and Web3 clients in the last year. 

In particular, managing the banking needs of 80% of VASPs in Hong Kong.