Hong Kong Grants Licenses to Asset Managers for Crypto Spot Market Products

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Hong Kong,Asset Managers,Licenses

Hong Kong's Securities and Futures Commission (SFC) has granted licenses to asset managers, including ChinaAMC, Harvest Global, and Bosera International, to launch spot market products for cryptocurrencies. This move signals the increasing institutionalization of crypto assets and the potential for Hong Kong to become a crypto hub.

. It’s the latest signal of the increasing institutionalization of the world’s leading crypto assets, and perhaps a harbinger of things to come in mainland China, which banned virtually all crypto activity in 2021.

This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the fullChinaAMC, Harvest Global and Bosera International are among the asset managers granted licenses to launch these spot market products by the Hong Kong’s Securities and Futures Commission , though more may follow. In recent months, Hong Kong regulators have signaled their intent to open the former citystate into a crypto hub.

Europe, Singapore, Australia and Dubai also have approved bitcoin ETFs available in their respective regions. The U.K. will soon allow crypto-traded notes to be traded on the London Stock Exchange starting in May, while Australia is expected to approve them in June this year.The Hong Kong news is positive especially considering the city’s role as a regional financial hub, perhaps opening the door for nearby neighbors like Japan and Singapore to also open the floodgates to spot bitcoin investing.

However, unlike the unlock that happened in the U.S., which is one of the main drivers of the recent bitcoin rally that has pushed the asset to ever newer all-time highs, there are reasons to doubt billions in new capital will flood into the market. Bitcoin ETFs in the U.S. this year have been some of the fastest growing financial products ever — already accounting for billions in assets under management.

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