marking a significant step towards integrating cryptocurrencies into mainstream finance within the region.

Several offshore Chinese asset management firms are poised to introduce these virtual asset spot ETFs shortly.

Harvest Fund Management and Bosera Asset Management, both based in Hong Kong, have announced receiving conditional approvals from the city's Securities and Futures Commission (SFC) to launch their respective ETFs.

In a related development, China Asset Management's Hong Kong division, ChinaAMC (HK), has been greenlit to offer virtual asset management services and is currently developing bitcoin and ether spot ETFs.

The SFC, in response to inquiries from Reuters, stated that it provides conditional authorization to ETF applications that meet its criteria, subject to certain conditions such as fee payments, document submissions, and obtaining listing approval from the Hong Kong Stock Exchange (HKEX). However, the regulator has not disclosed specifics regarding the virtual asset spot ETFs.

This initiative follows the U.S.'s introduction of its first spot bitcoin ETFs three months prior, which have since attracted approximately $12 billion in net inflows.

Despite the prohibition of cryptocurrency in mainland China, Hong Kong is positioning itself as a leading global digital asset hub, aiming to enhance its appeal as a financial center.

Bosera Asset Management (International) highlighted that the launch of virtual asset spot ETFs offers new investment options and further cements Hong Kong's reputation as a premier financial hub and center for digital assets. Bosera is set to debut its product in collaboration with HashKey Capital, a Hong Kong-based firm.

The upcoming virtual asset spot ETFs in Hong Kong will feature an innovative "in-kind" subscription process, enabling investors to acquire ETF shares directly with bitcoin or ether, as per Bosera's statement.

Chinese financial institutions, seeking alternatives amid the downturn in the nation's equity markets, are eager to engage in the development of crypto assets in Hong Kong.

Harvest Global Investments' CEO, Han Tongli, expressed that the conditional approval aligns with the company's mission to foster industry innovation and cater to the varied investment needs of their clientele.

Bitcoin's value has surged over 50% this year, reaching a record high of $73,803 in March, and was trading around $66,000 on the mentioned Monday.

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