(Bloomberg) — Hong Kong gave initial approvals for asset managers to start spot-Bitcoin and Ether exchange-traded funds, the firms said, a development that boosted both digital assets as well as the wider crypto market.

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Harvest Global Investments and a partnership between HashKey Capital Ltd. and Bosera Asset Management (International) Co. announced initial approvals in separate statements on Monday.

The Hong Kong unit of China Asset Management said it had received approval from the city’s Securities & Futures Commission for the provision of virtual-asset management services and is deploying resources to develop products.

In a statement, OSL Digital Securities Ltd. said it would provide custodial services for Bitcoin and Ether products from the China Asset Management unit as well as Harvest.

Hong Kong is vying with the likes of Singapore and Dubai to establish itself as a hub for digital-asset firms after rolling out a regulatory regime for virtual-asset service providers last year.

The crypto market got a boost from the authorities’ decision to give a green light for spot funds. Bitcoin extended gains, climbing as much as 4.3% to about $66,629, while Ether added 6.1% to reach $3,257.

–With assistance from Kiuyan Wong.

(Updates market prices in the sixth paragraph.)

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