China Asset Management, Bosera Capital, HashKey Capital Limited announced that the Hong Kong Securities and Futures Commission (SFC) has approved both spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) applications.

Hashkey Capital was founded in 2015 by current CEO Dr Xiao Feng, and is a digital asset platforms and investment fund prominent in Asia. It has $1 billion in AUM and recently seeked to raise funds at a $1 billion plus valuation. Shenzhen-based Bosera Capital is one of the first fund management companies in China, and manages $200 billion in assets. Meanwhile, China Asset Management is a prominent asset management firm founded in 1998. It manages one of the largest equity ETF products in China, with a total of $266 billion in assets under management (AUM).

Bloomberg first reported about the imminent approval of the spot ETFs, with the listing details being finalized in time with Hong Kong Exchanges & Clearing (HKEX). The report stated that the products could be launched by the end of this month, marking a significant development in the region's cryptocurrency market.

The approval of these ETF products in Hong Kong is anticipated to be a major driver for the cryptocurrency market, positioning the city as a leading digital asset hub in Asia. While the United States approved spot Bitcoin ETFs in January, resulting in a record-breaking price surge that propelled Bitcoin to reach $73,000, it has not yet approved Ethereum ETFs. In contrast, Hong Kong approved both Bitcoin and Ethereum spot ETFs at the same time. Meanwhile, expectations for the approval of spot Ether ETF products in the U.S. remain subdued due to the lack of SEC engagement with the applicants. JPMorgan analysts placed the approval of Ether ETFs by the final deadline in May at 50%.

Following the news of the approval, BTC surged 2.81% in the past 24 hours to trade at $66,526, up from the lows of $62,000. Meanwhile, ETH gained 4.88% and is currently trading at $3,246. The crypto markets had a brutal sell-off last week following escalating tensions in the Middle East, which propelled fears of a blown-out war.