According to sources familiar with the situation, Hong Kong is reportedly close to giving the green light for its first Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs). A final decision could be made as soon as Monday, Bloomberg reports. This development signifies Hong Kong’s significant role in the Asian cryptocurrency market and its determination to establish itself as a major digital asset hub.
Approval For The Spot Bitcoin, ETH ETFs On Monday?
The Securities and Futures Commission (SFC) in Hong Kong is close to granting approval to Harvest Global Investments and a collaboration between Bosera Asset Management (International) Co. and HashKey Capital. However, their applications are subject to finalizing listing procedures with Hong Kong Exchanges & Clearing Ltd. (HKEX). The goal is to introduce these products by the end of April.
Instead of investing in future cryptocurrencies through existing ETFs in Hong Kong, these new ETFs enable investors to buy the actual Bitcoin and Ether directly. This approach could provide a more concrete investment foundation for traders, differing from derivatives-backed investments. The launch of comparable ETFs in the US on January 11 has reportedly led to heightened market engagement and substantial funds flowing into the digital currency space.
Significantly, the forthcoming Hong Kong ETFs will adopt an “in-kind creation method,” as previously mentioned by Bitcoinist. With this approach, cryptocurrencies are directly exchanged during the formation and redemption phases. This could potentially lower costs and enhance liquidity, representing a significant improvement compared to conventional ETF frameworks and US counterparts.
In addition, these ETFs are being introduced at an opportune moment. The global crypto community is on high alert as we approach the Bitcoin Halving event in less than a week, an occurrence that has historically affected market trends. By launching now, there’s potential to draw significant investment not only from Hong Kong but also from the larger Chinese and Asian markets.
Following Hong Kong’s regulatory progression, this development is the next step. Previously, they set up a regulatory framework for virtual asset service providers and gave the green light to virtual asset management funds. Introducing these ETFs is viewed as an extension of their initiatives to create a controlled and reliable setting for digital assets. It strengthens investor protection and bridges the gap between traditional finance and digital assets.
Based on Matrixport’s report from Singapore, the investment tool may generate approximately $25 billion in interest from Chinese investors via the Southbound Stock Connect scheme.
At press time, BTC price did not show any major reaction to the news and traded at $70,656.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- GLM PREDICTION. GLM cryptocurrency
- USD COP PREDICTION
- BCH PREDICTION. BCH cryptocurrency
- USD MYR PREDICTION
- CKB PREDICTION. CKB cryptocurrency
2024-04-12 16:41