Hong Kong is set to approve Asia's first spot bitcoin exchange-traded funds (ETFs) this month, with the first approvals likely to be announced next week, according to people familiar with the matter, as reported by Reuters and Chinese media, qq.
<blockquote class="twitter-tweet”>
BREAKING: Hong Kong ready to approve venue twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF next week, reports indicate.
You are ready? pic.twitter.com/gsAfBx6Nmj
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1777983777035145267?ref_src=twsrc%5Etfw”>April 10, 2024
The Hong Kong Securities and Futures Commission (SFC) has accelerated the approval process, positioning Hong Kong as a pioneer in the bitcoin ETF space in Asia. The move comes ahead of industry expectations for launches later this year.
Several Chinese financial institutions, including the Hong Kong affiliates of Harvest Fund and China Southern Fund, have recently filed for bitcoin ETFs. Spot bitcoin ETFs provide exposure to real bitcoin rather than derivatives.
According to sources, the SFC will announce its first approved batch of spot bitcoin ETFs on April 15. After approvals, the funds can apply for listing on the Hong Kong Stock Exchange, which is expected to take 10 days.
This accelerated timeline demonstrates Hong Kong's proactive approach to enhancing its attractiveness as a global financial center. It also builds on the city's pro-bitcoin stance, including granting cryptocurrency exchange Hashkey a retail trading license last year.
The news comes after the tremendous success of spot bitcoin ETFs in the United States after their approval in January, attracting more than $12 billion in inflows. As the first Asian jurisdiction to approve spot bitcoin ETFs, Hong Kong is paving the way for potential launches in other markets.
Investment products accessible in bitcoin have seen rapid growth in demand among institutional and retail investors. By leveraging its regulatory framework to satisfy this appetite, Hong Kong cements its position as a rising bitcoin hub in Asia.
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