Hong Kong has taken a significant step toward mainstream crypto adoption, as the Securities and Futures Commission (SFC) has approved multiple fund houses to collaborate with licensed cryptocurrency exchanges. This new regulatory greenlight allows investors to purchase spot Bitcoin (BTC) and spot Ethereum (ETH) directly through their existing securities accounts—eliminating the need to open separate accounts on digital asset exchanges.
This marks a pivotal shift in how retail and institutional investors access digital assets. Previously, acquiring cryptocurrencies required navigating specialized platforms, completing KYC processes, and managing private keys or exchange-based custody. Now, with integration into traditional brokerage infrastructure, buying BTC and ETH becomes as seamless as purchasing stocks or ETFs.
👉 Discover how you can access digital assets through regulated financial channels today.
Regulatory Milestone for Crypto in Hong Kong
The Hong Kong SFC has granted licenses to at least three fund management firms, enabling them to launch spot crypto products in partnership with two licensed virtual asset exchanges. These products are structured as exchange-traded funds (ETFs) or investment trusts, fully compliant with local securities laws.
This regulatory framework ensures investor protection through:
- Regular audits and disclosures
- Custody by regulated third parties
- Real-time pricing transparency
- Segregation of client assets
By bridging traditional finance (TradFi) and decentralized finance (DeFi), Hong Kong is positioning itself as Asia’s leading hub for compliant crypto innovation. Industry experts believe this move will not only boost market participation but also generate new tax revenue streams for the government.
How It Works: Buying Crypto via Securities Accounts
Investors no longer need to juggle multiple platforms. Here's how the process works under the new system:
- Log in to your existing securities account – whether through a local bank, brokerage, or online investment platform.
- Search for approved crypto-linked products – such as spot BTC or ETH funds listed on the Hong Kong Stock Exchange.
- Place an order like any stock trade – using HKD or USD, depending on the product.
- Hold, sell, or transfer – all within a regulated environment backed by audited reserves.
These products hold actual Bitcoin and Ethereum on-chain, meaning investors gain exposure to real spot prices—not futures contracts or synthetic derivatives.
This integration simplifies compliance, enhances security, and lowers the entry barrier for older or risk-averse investors who trust traditional financial institutions more than crypto-native platforms.
Market Impact: Increased Liquidity and Institutional Trust
The ability to buy Bitcoin and Ethereum through familiar channels is expected to drive substantial inflows into the crypto market. Analysts predict that within 12–18 months, Hong Kong-based spot crypto ETFs could manage over $5 billion in assets under management (AUM).
Moreover, this development strengthens Hong Kong’s reputation as a forward-thinking financial center. While mainland China maintains strict restrictions on cryptocurrency trading, Hong Kong operates under a “one country, two systems” model that allows it to experiment with progressive regulations.
👉 See how global investors are gaining secure access to Bitcoin and Ethereum.
Why This Matters for Global Crypto Adoption
Hong Kong’s approach could serve as a blueprint for other jurisdictions balancing innovation with oversight. Key takeaways include:
- Regulatory clarity: Clear rules attract institutional capital.
- Investor protection: Mandatory custody standards reduce fraud risks.
- Market stability: Reducing reliance on unregulated offshore exchanges minimizes systemic risk.
As more investors enter through regulated gateways, price volatility may gradually decrease, fostering long-term confidence in digital assets.
Broader Financial Markets: USD/JPY and U.S. Economic Data
While crypto developments dominate headlines in Asia, global macro trends continue to shape investor sentiment.
In early 2025, the USD/JPY pair declined by 9%, marking one of its strongest performances in recent years. The yen’s rebound was fueled by shifting monetary policies, including hints from the Bank of Japan about potential rate hikes amid rising inflation pressures.
Meanwhile, strong U.S. economic data tempered expectations for Federal Reserve rate cuts. The June Non-Farm Payrolls (NFP) report showed job growth exceeding forecasts, signaling resilience despite ongoing trade tensions and tariff impacts.
As a result:
- The 10-year U.S. Treasury yield rose to 4.35%
- The S&P 500 reached a record high of 6,279 points
- The Nasdaq Composite surged past 20,600
- The Dow Jones Industrial Average climbed 0.77%
Even the China Golden Dragon Index recovered with a 0.4% gain, reflecting improved risk appetite among global investors.
Bitcoin Nears All-Time High Amid Growing Optimism
On July 4, Bitcoin extended its rally, briefly touching $110,529 before pulling back slightly. At the time of writing, BTC trades at $109,483—just $1,000 below its all-time high of $120,000.
Despite some short-term profit-taking, market sentiment remains bullish. On-chain data shows increasing wallet activity and exchange outflows, suggesting holders are moving coins to cold storage—a sign of long-term conviction.
Trading analysts note that the convergence of institutional adoption, regulatory clarity in key markets like Hong Kong, and macroeconomic tailwinds could propel Bitcoin toward new highs in late 2025.
Frequently Asked Questions (FAQ)
Q: Do I still need a crypto exchange account if I use a securities account?
A: No. With approved spot crypto funds, you can buy Bitcoin and Ethereum directly through your brokerage without creating separate exchange accounts.
Q: Are these products backed by real Bitcoin and Ethereum?
A: Yes. The funds hold actual spot BTC and ETH on blockchain networks, ensuring full asset backing and price correlation.
Q: Is my investment protected under Hong Kong law?
A: While crypto investments carry market risk, these products operate under SFC regulations, requiring regular audits, transparent reporting, and secure custody solutions.
Q: Can I withdraw the actual cryptocurrency?
A: Currently, most securities-based crypto products do not allow direct withdrawal of tokens. You trade shares representing ownership, similar to gold ETFs.
Q: What fees are involved?
A: Fees vary by provider but typically include a management fee (0.3%–1%) and standard brokerage commissions. Always review the prospectus before investing.
Q: Will other cryptocurrencies be added in the future?
A: Regulators are evaluating additional assets like Solana and Cardano, but for now, only Bitcoin and Ethereum have been approved for spot trading via securities accounts.
👉 Start your journey into regulated digital asset investing now.