Hong Kong Approval of Spot Ether ETFs Lauded by OSL Executive, Eyes Competitive Edge Against US

Crypto News– An OSL executive, Gary Tiu, praised Hong Kong’s preliminary approval of spot ether exchange-traded funds, suggesting it could give the region an edge over the U.S. in the retail spot ETF market.

Hong Kong Approval of Spot Ether ETFs Lauded by OSL Executive, Eyes Competitive Edge Against US

In an interview with The Block on Monday, Tiu stated that the in-principle approval of spot ether products was absolutely spot-on.

He noted, Right now, the U.S. has not approved any spot ETH products. So the Hong Kong managers are certainly standing in a very good position when they launch the ETH products in Hong Kong for sure.

Tiu’s remarks followed the Hong Kong Securities and Futures Commission’s granting of in-principle approval to a range of spot bitcoin and ether ETFs, including those in which OSL acts as a sub-custodian and infrastructure service provider.

Stock Connect Excludes Mainland Investors

Some individuals in the crypto industry have suggested that the upcoming Hong Kong spot crypto ETFs could draw significant interest from investors in the Chinese mainland via the Southbound Stock Connect program. However, this argument may not hold much weight, as the Stock Connect program currently prohibits mainland investors from investing in crypto futures ETFs in Hong Kong, let alone spot crypto equivalents.

I don’t believe any of these [crypto ETF] products have been included in the eligible securities list [of the Stock Connect program] yet, but I think the possibility or at least the potential for such inclusion is something that the market certainly likes, the position has not been made clear by any regulators on this.

Gary Tiu

Subscription and Redemption via Asset Transfer

The main standout aspects of the upcoming spot crypto ETFs are the options for in-kind subscription and redemption.

For instance, Bosera Asset Management and HashKey Capital’s forthcoming spot bitcoin and ether ETFs are anticipated to enable investors to subscribe for ETF shares directly using bitcoin and ether, as stated by the firms.