According to a recent Reuters report, Hong Kong is set to become the first city in Asia to launch spot Bitcoin ETFs. Notably, the first approvals for these ETFs are expected to be announced as early as next week, which is well ahead of industry expectations for such launches this year.
The attempt to revive Hong Kong
According to the report, the decision to introduce spot Bitcoin ETFs comes as Hong Kong seeks to reestablish its status as a leading financial center, in which pandemic-related restrictions have eased somewhat, China's economic slowdown and tensions between China and the United States.
By adopting cryptocurrency investment vehiclesHong Kong aims to attract new global investments and propel crypto adoption to new heights.
Adrian Wang, CEO of Hong Kong-based crypto wealth manager Metalpha, highlighted the importance of the introduction of Bitcoin ETFs in Hong Kong, highlighting the potential for growth global investment and wider adoption of cryptocurrencies.
The move follows the success of the United States, which launched the first US-listed spot Bitcoin ETFs in January and attracted around $12 billion in net inflows, as previously. reported by Bitcoinist.
While Hong Kong's Securities and Futures Commission (SFC) and the three Chinese companies declined to comment on the matter, the Hong Kong units of China Asset Management and Harvest Fund Management were recently granted approval of the SFC to manage portfolios with investments greater than 10% in virtual assets.
These parent companies are major mutual fund companies in China, each managing assets exceeding 1 trillion yuan ($138 billion).
Bitcoin Futures Success Fuels Interest in Spot Bitcoin ETFs
Cryptocurrency trading is forbidden in mainland China. Nonetheless, Chinese offshore financial institutions have shown keen interest in participating in the development of crypto assets in Hong Kong.
The city had already approved ETFs for cryptocurrency futures in late 2022, with the CSOP Bitcoin Futures ETF being the largest. He has raised approximately $120 million in assets under managementt, a seven-fold increase since September 2023.
In addition to the mentioned asset managers, Hong Kong-based Value Partners has expressed plans to launch a spot Bitcoin ETF, although it has not revealed whether a formal application has been submitted.
Additionally, at least four asset managers from mainland China and Hong Kong, including China Asset Management, Harvest Fund Management, and Bosera Asset Management, have submitted applications to launch spot Bitcoin ETFs.
As the regulatory landscape evolves, the introduction of spot Bitcoin ETFs in Hong Kong is expected to pave the way for greater investment opportunities and contribute to the growth and maturation of the global cryptocurrency market.
At the time of writing, the market's leading cryptocurrency has seen significant price volatility. It approached its current all-time high on Monday and reached a high of $72,600. However, it encountered higher level resistance, falling all the way to the $67,600 range. This represents a decrease of 3.5% in the last 24 hours alone.
Featured image from Shutterstock, chart from TradingView.com