According to a recent Reuters bitcoin-etfs-april-sources-say-2024-04-10/” target=”_blank” rel=”noopener nofollow”>report, Hong Kong is about to become the first city in Asia to launch bitcoin spot ETFs. Notably, initial approvals for these ETFs are expected to be announced next week, significantly exceeding industry expectations for these types of launches this year.
Hong Kong's commitment to reactivation
According to the report, the decision to introduce spot bitcoin ETFs comes as Hong Kong seeks to revive its status as a prominent financial center, in which pandemic-related restrictions have eased somewhat, China's economic slowdown and tensions between China and the United States.
Adopting cryptocurrencies investment vehiclesHong Kong aims to attract new global investments and drive cryptocurrency adoption to new heights.
Adrian Wang, CEO of Hong Kong-based cryptocurrency manager Metalpha, emphasized the importance of introducing bitcoin ETFs in Hong Kong, noting the potential for greater global investment and broader adoption of cryptocurrencies.
This move follows the success of the United States, which launched the first US-listed spot bitcoin ETFs in January and attracted approximately $12 billion in net inflows, as previously. reported by Bitcoinista.
While the Hong Kong Securities and Futures Commission (SFC) and the three Chinese firms declined to comment on the matter, the Hong Kong units of China Asset Management and Harvest Fund Management recently obtained approval of the SFC to manage portfolios with investments greater than 10% in virtual assets.
These parent companies are prominent mutual fund firms in China, each managing assets exceeding one trillion yuan ($138 billion).
bitcoin Futures Success Fuels Interest in Spot bitcoin ETFs
Cryptocurrency trading is forbidden in mainland China. However, Chinese offshore financial institutions have shown great interest in participating in the development of crypto assets in Hong Kong.
The city had previously approved ETFs for cryptocurrency futures in late 2022, with the CSOP bitcoin Futures ETF being the largest. He has accumulated around 120 million dollars in assets under managementt, a seven-fold increase from September 2023.
In addition to the asset managers mentioned, Hong Kong-based Value Partners has expressed its exploration of launching a spot bitcoin ETF, although it has not revealed whether an official application has been filed.
Additionally, at least four asset managers from mainland China and Hong Kong, including China Asset Management, Harvest Fund Management and Bosera Asset Management, have filed applications to launch bitcoin spot 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-leading cryptocurrency has witnessed significant price volatility. It approached its current all-time high on Monday and hit a high of $72,600. However, it encountered higher level resistance, falling to the $67,600 range. This represents a 3.5% decrease in the last 24 hours alone.
Featured image from Shutterstock, chart from TradingView.com
