Hong Kong approves first Solana ETF, ahead of the US, amid moves to embrace crypto

Core Viewpoint - Hong Kong has approved its first exchange-traded fund (ETF) that tracks the performance of the cryptocurrency token Solana, positioning itself as a digital asset hub ahead of the US [1][5]. Group 1: ETF Details - The ChinaAMC Solana ETF, which is the first of its kind in Asia, allows trading in Hong Kong dollar, yuan, and US dollar [5]. - The ETF is set to start trading on Monday and directly holds Solana, aiming to offer returns that closely correspond to the performance of the token before fees and expenses [2]. Group 2: Market Context - As of Wednesday, SOL, the native token of the Solana blockchain, was the sixth largest cryptocurrency by market value, with a total value just above US$100 billion, trading at approximately US$184 [3]. - SOL has experienced a decline of about 2.7% this year but is up about 10% from a year earlier [3]. Group 3: Industry Implications - The launch of the Solana ETF boosts Hong Kong's digital asset ambitions, which have faced challenges due to increased scrutiny from Beijing regarding market enthusiasm over stablecoins and real-world asset tokenization projects [5]. - Canada launched the world's first Solana ETF in April, while the US has yet to approve any [5].