Hong Kong regulators are expected to grant approval for the launch of Ethereum and Bitcoin exchange-traded funds (ETFs) as soon as Monday. This development comes just days before the highly-anticipated Bitcoin halving, which is anticipated to fuel a surge in the price of BTC. The Chinese asset management firms, Harvest Fund Management, Bosera Asset Management, and HashKey Capital, are reportedly at the forefront of obtaining regulatory clearance for the new investment vehicles.

Bloomberg reported on Friday that Harvest Fund Management, Bosera Asset Management, and HashKey Capital are likely to receive the green light for ETFs linked to the top two digital assets. However, the prospects for spot Ethereum ETFs in the United States have dimmed recently.

Hong Kong and the Hong Kong Stock Exchange (HKEX) are influential global financial hubs and principal gateways to Chinese markets. In terms of market capitalization, HKEX holds a significant position alongside the New York Stock Exchange (NYSE) as one of the largest exchanges worldwide.

Bitcoin ETFs are investment products managed by firms that purchase and store actual Bitcoin, with the value of the ETFs linked to the price of the Bitcoin held in the fund. Similarly, Ethereum ETFs operate in the same manner. These funds are listed on traditional stock exchanges, allowing investors to trade them like other stocks.

Speculation about HashKey Capital's involvement in offering Bitcoin and Ethereum ETFs began in January when the Singapore-based company announced a $500 million fund aimed at advancing blockchain technology initiatives.

While the Chinese government takes a stern stance against individual Bitcoin mining operations and trading, cryptocurrencies and blockchain technology continue to thrive. China established a blockchain research hub in Beijing last year, emphasizing its growing interest in the technology.

In contrast to the United States, where regulators have been slow in approving crypto-based ETFs, Asian markets, including Japan, South Korea, and Singapore, are showing increased willingness to provide digital asset investment products.

The anticipated approval of ETFs in Hong Kong, along with rising interest in Bitcoin and the approval of ETFs in other regions, is likely to attract investors seeking the latest digital asset investment opportunities.

Decrypt reached out to Harvest Fund Management, Bosera Asset Management, and HashKey Capital for comment but did not receive any immediate responses.

As the availability of digital asset investment products expands, Hong Kong positions itself as a key player in the growing cryptocurrency and blockchain industry, providing investors with new avenues to access and trade Ethereum and Bitcoin.