The Securities and Futures Commission (SFC) of Hong Kong has reportedly given approval to three Bitcoin exchange-traded funds (ETFs) for spot trading. The approved ETFs are offered by Harvest Global Investments, China Asset Management, and a partnership between HashKey and Bosera Asset Management. The Stock Exchange of Hong Kong is expected to finalize listing procedures and related arrangements within the next two weeks.
The approval of these ETFs in Hong Kong could potentially trigger a post-halving rally for Bitcoin, according to Herbert Sim, the chief operating officer of crypto exchange Websea. Sim believes that the approval will prompt Chinese banks to start buying Bitcoin themselves, leading to increased demand.
In contrast, the chief executive of investment firm VanEck, Jan van Eck, believes that it is unlikely that the United States Securities and Exchange Commission (SEC) will approve spot Ether ETFs in May. Van Eck stated that his firm’s application for a spot Ether ETF, along with Cathie Wood’s ARK Invest, will probably be rejected. Both firms are awaiting final decisions by May 23 and May 24, respectively.
In a testimony before the Senate Banking Committee, U.S. Deputy Treasury Secretary Adewale Adeyemo called for more enforcement powers to combat illicit finance, terrorism, and sanctions evasion facilitated by cryptocurrencies. Adeyemo proposed three reforms, including the introduction of secondary sanctions targeting foreign digital asset providers involved in illicit finance. He emphasized the need for a new secondary sanctions tool to address the challenges posed by crypto exchanges and money services that do not rely on correspondent accounts.
Dubai’s Virtual Asset Regulatory Authority (VARA) plans to ease regulatory burdens for small crypto firms. Matthew White, CEO of VARA, outlined plans to reduce compliance costs for smaller entities. Under the proposed structure, larger participants would host smaller players, thereby sharing the costs of compliance. This would allow smaller players to enter the ecosystem and be regulated without incurring the same level of compliance costs.
In Australia, hundreds of investors have lost over 160 million Australian dollars ($104 million) after a group of cryptocurrency mining companies collapsed into liquidation. The Australian Security and Investments Commission (ASIC) has launched civil proceedings against the companies and their directors, accusing them of targeting local investors and operating without the necessary license. ASIC alleges that approximately 450 investors entrusted a total of 62 million AU$ ($40 million) to these companies, which promised fixed-rate returns on investments in blockchain mining packages.