This move signals a significant step toward expanding institutional investors' access to digital asset-based investments.

As part of the anticipated approval, Harvest Fund Management Company, a subsidiary of Chinese asset manager, is expected to receive the green light to operate as an issuer for both a bitcoin and an ether fund. Additionally, a partnership between Bosera Asset Management (International) Co. and HashKey Capital is likely to be approved to offer both types of spot ETFs.

The initial batch of issuers is tentatively scheduled to launch the bitcoin and ether spot ETFs by the end of April, according to Bloomberg's sources. This development follows the recent signal from the Hong Kong Securities and Futures Commission (SFC) that it intends to facilitate greater access to digital asset-based investments for institutional investors.

Earlier this month, the SFC granted clearance to Harvest and China Asset Management to manage cryptocurrency-based funds, further solidifying Hong Kong's position as an emerging hub for digital asset investment.

HashKey's CEO, Livio Weng, addressed the possibility of a spot ether ETF approval, stating that it would depend on resolving the issue of on-chain staking. This suggests that regulators are actively considering the viability of these funds and the potential benefits they offer to investors.

While this news positively impacts the cryptocurrency market, it is important to note that investors should exercise caution and stay informed. The Block, an independent media outlet, delivers objective, impactful, and timely information about the crypto industry. The Block is majority-owned by Foresight Ventures, which invests in other crypto-related companies. It operates independently to provide reliable information to readers.

This article is provided for informational purposes only and should not be interpreted as legal, tax, investment, financial, or other advice. Elizabeth Napolitano, a data reporter with expertise in business and technology news, including cryptocurrencies, contributed to this report. Prior to joining The Block, Napolitano reported on BigTech, AI, cryptocurrencies, and videogames for CBS Moneywatch and CoinDesk. She holds an MA in Journalism from CUNY.