Based on a current Reuters article, Hong Kong could be the first Asian city to introduce Bitcoin spot Exchange-Traded Funds (ETFs) soon. Remarkably, potential approvals for these ETFs might be unveiled as soon as next week, which is notably earlier than anticipated industry timelines for such introductions in 2023.
Hong Kong’s Bid For Revival
According to the report, the plan to launch bitcoin spot ETFs in Hong Kong aims to boost its financial standing, as pandemic limitations lessen and China’s economy slows down, along with the escalating tensions between China and the US.
Hong Kong intends to encourage the use of cryptocurrency investment options to bring in new international investments and raise the level of crypto acceptance to greater extremes.
Adrian Wang, the CEO of Metalpha, a crypto wealth management firm based in Hong Kong, highlighted the importance of bringing Bitcoin ETFs (Exchange-Traded Funds) to Hong Kong. He explained that this could lead to more international investment and broader usage of cryptocurrencies.
Following the United States’ achievement of introducing the first Bitcoin ETFs on US stock exchanges in January, there have been around $12 billion in investments poured in, as previously mentioned by Bitcoinist.
The Hong Kong Securities and Futures Commission (SFC) and three Chinese companies chose not to discuss this issue. However, China Asset Management and Harvest Fund Management’s Hong Kong branches have recently received SFC approval for managing investment portfolios containing more than 10% virtual assets.
In simple terms, these Chinese companies serve as major players in the mutual fund industry, overseeing more than one trillion yuan ($138 billion) in assets for their clients.
Bitcoin Futures Success Fuels Interest In Spot Bitcoin ETFs
In China’s mainland, the trading of cryptocurrencies is not allowed. However, financial institutions based in China but located offshore exhibit great enthusiasm towards the creation and growth of crypto assets in Hong Kong.
In late 2022, the city gave its approval for several crypto futures ETFs, with the CSOP Bitcoin Futures ETF being the largest one. This particular ETF now manages around $120 million in assets, marking a significant sevenfold growth since September 2023.
Value Partners, based in Hong Kong, has indicated its intention to introduce a Bitcoin spot ETF, yet they have not revealed if they have formally applied for this endeavor.
At least four major Chinese and Hong Kong investment firms, such as China Asset Management, Harvest Fund Management, and Bosera Asset Management, have applied to start trading Bitcoin spot ETFs.
With regulatory changes coming, the arrival of Bitcoin spot ETFs in Hong Kong is anticipated to broaden investment options and foster expansion in the international cryptocurrency market.
Currently, the top cryptocurrency is experiencing considerable price fluctuations. It touched its record high of $72,600 on Monday, but then hit a roadblock and dropped to around $67,600. This is a decrease of approximately 3.5% in just one day.
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2024-04-10 22:11