Hong Kong's highly anticipated spot bitcoin exchange-traded funds (ETFs) are scheduled to launch in late April, according to several industry sources.
<blockquote class="twitter-tweet”>
NEW: Hong Kong twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETFs to start trading on April 30 and could generate $25 billion: reports
It's just a matter of time pic.twitter.com/Y1Xo4JVrO7
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1780531984353107974?ref_src=twsrc%5Etfw”>April 17, 2024
The Hong Kong Securities and Futures Commission (SFC) recently approved several fund managers to offer spot bitcoin ETFs. Following this, OSL, a crypto infrastructure provider for some approved fund managers, stated that bitcoin ETFs aim to be available by the end of April.
Markus Thielen, founder of research firm 10x, also stated that bitcoin ETFs could begin trading on April 30. The launch schedule 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 Hong Kong bitcoin ETFs through the Southbound Stock Connect program.
Thielen echoed this sentiment, stating that ETFs could generate $25 billion if they were fully accessible to Chinese investors. However, he noted that Chinese participation could take at least six months due to evolving regulations.
However, ETFs mark a milestone for bitcoin adoption in Asia. They provide regulated exposure to bitcoin, opening up the assets to a wider range of investors.
The unique in-kind reimbursement feature of the funds also makes them globally competitive. This allows bitcoins to be exchanged directly for ETF shares, increasing efficiency.
<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MjA0MzE5MTg5MTE1NDc5NDkz/bm-x-unchained-article-cta—learn-more.png”>
By approving ETFs, Hong Kong cements its position as a rising bitcoin hub. The city is moving quickly to license bitcoin companies and products amid growing demand.
With the upcoming bitcoin halving just days away, the timing of the ETF's launch is opportune. Many predict that the supply shock event will drive bitcoin to new highs, benefiting linked investment vehicles.
If successful, Hong Kong spot ETFs could prompt other Asian jurisdictions to follow suit. The ripple effect would drive regional participation and bitcoin market maturity.
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