According to insiders, Hong Kong is expected to approve its first spot Bitcoin ETFs in April.

According to two persons with knowledge of the situation, spot bitcoin exchange-traded funds may debut in Hong Kong this month, with the first approvals probably being revealed the following week.
That schedule, which is far faster than industry forecasts of launching later this year, would make Hong Kong the first city in Asia to offer the popular ETFs.
One of the persons said that regulators have accelerated the approval procedure.

Hong Kong authorities are eager to take any necessary steps to increase the city’s appeal for financial trade, as the city has lost much of its luster as a global financial hub as a result of the pandemic’s limitations, China’s faltering economy, and Sino-US tensions.
Adrian Wang, CEO of Metalpha, a Hong Kong-based cryptocurrency wealth manager, stated, “The significance of Hong Kong ETFs is far-reaching as it could bring in fresh global investment as well as pushing crypto adoption to a new height.”

According to data from BitMEX Research, the United States introduced the first exchange-traded funds (ETFs) to track spot bitcoin in January, attracting approximately $12 billion in net inflows.
This year, Bitcoin has increased in value by almost 60%, reaching an all-time high of $73,803 in March. On Wednesday, it was trading at almost $69,000.
According to the two sources, at least four asset managers from mainland China and Hong Kong have applied to start the ETFs.

The two people and a third source say that among the applicants are the Hong Kong branches of China Asset Management, Harvest Fund Management, and Bosera Asset Management.
The sources declined to be named and were not authorized to communicate with the media.
The three Chinese businesses and the Securities and Futures Commission (SFC) of Hong Kong declined to comment.
The SFC website states that this month, authority was granted to China Asset Management and Harvest Fund Management’s Hong Kong divisions to manage portfolios that invest more than 10% in virtual assets.

Their parent companies manage more than 1 trillion yuan ($138 billion) in assets, making them among of the largest mutual fund companies in China.
Despite mainland China’s restriction on cryptocurrency trading, offshore Chinese financial institutions are eager to get involved in Hong Kong’s cryptocurrency asset growth.
In late 2022, Hong Kong approved its first exchange-traded funds (ETFs) for bitcoin futures. Since September, the assets under control of the largest one, the CSOP Bitcoin Futures ETF (3066.HK), have increased seven times, totaling over $120 million.
A spot bitcoin ETF is something that Hong Kong-based Value Partners has also stated it is considering developing. It hasn’t said whether or whether it has filed an application.

Similar Articles

Leave a Reply

Your email address will not be published. Required fields are marked *