The highly anticipated Hong Kong spot bitcoin exchangeExchange-traded funds (ETFs) are expected to launch by the end of April, according to various industry sources.
NEW: ðŸ‡ðŸ‡° Hong Kong #Bitcoin ETFs to start trading by April 30, could raise $25 billion: reports
It's just a matter of time 🚀 pic.twitter.com/Y1Xo4JVrO7
– Bitcoin Magazine (@BitcoinMagazine) April 17, 2024
The Hong Kong Securities and Futures Commission (SFC) recently approved several fund managers offer spot bitcoin ETFs. Following this, OSL, a crypto infrastructure provider for certain licensed fund managers, said that Bitcoin ETFs are expected to go live as soon as the end of April.
Markus Thielen, founder of research firm 10x, also said that Bitcoin ETFs could begin trading by April 30. The launch timeline will depend on finalizing details with regulators.
Once listed, analysts predict that accessible funds could attract significant capital inflows. Singapore-based Matrixport expects mainland Chinese investors to invest up to $25 billion in the Hong Kong sector. Bitcoin ETF through the Southbound Stock Connect program.
Thielen echoed that sentiment, saying ETFs could raise $25 billion if they were fully accessible to Chinese investors. He noted, however, that Chinese participation could take at least six months due to regulatory developments.
Nonetheless, the ETFs mark an important milestone in Bitcoin adoption in Asia. They provide regulated exposure to bitcoin, opening the assets to a wider range of investors.
The funds' unique in-kind redemption functionality also makes them globally competitive. This allows bitcoins to be exchanged directly for ETF shares, increasing efficiency.
By approving ETFs, Hong Kong consolidates its position as a booming Bitcoin hub. The city is moving quickly to license Bitcoin companies and products in the face of growing demand.
With the next Bitcoin halving just days away, the timing of the ETF launch is opportune. Many predict that the supply shock will propel Bitcoin to new highs, benefiting related investment vehicles.
If successful, Hong Kong spot ETFs could inspire other Asian jurisdictions to follow suit. The domino effect would strengthen regional participation and the maturity of the Bitcoin market.