10 Financial Institutions Apply for Bitcoin and Ethereum ETFs in Hong Kong
Hong Kong’s financial sector is undergoing significant transformations as ten financial institutions prepare to introduce Bitcoin and Ethereum spot ETFs. This development has generated excitement among people who believe that if Hong Kong successfully launches Ethereum products before the United States, it could establish itself as a leader in the cryptocurrency industry rather than simply following the trend.
The introduction of the first Bitcoin spot ETFs in the United States two months ago was a major milestone. These funds received a staggering $6 billion in net inflows, bringing the total assets to over $50 billion. Although there has been much discussion about Bitcoin spot ETFs and Hong Kong began accepting applications in December, none of these products have been introduced to the market yet.
Concerns have been raised within the industry about the absence of Asian Bitcoin spot ETFs, as it puts Asian investors at a disadvantage compared to their American counterparts. It also exposes them to the risks associated with delayed market entry by U.S. capital. Consequently, many individuals are eagerly anticipating Hong Kong’s acceleration of spot ETFs, swaps, and other trading products.
Weng Xiaoqi, the COO of HashKey Group, highlighted the role played by the growth of the U.S. Bitcoin spot market in initiating the ongoing bull run. HashKey is working diligently with its partners to expedite the launch of Hong Kong’s spot ETFs and derivatives.
The number of Bitcoin spot ETFs to be listed for the first time in Hong Kong will be determined by the China Securities Regulatory Commission. It is anticipated that Hong Kong will have fewer Bitcoin spot ETFs compared to the U.S., where eleven have been approved. This is due to the relatively smaller size of the markets. The decision to reduce the number of ETF listings is expected to foster the growth of Hong Kong’s market by enhancing liquidity.
Harvest Fund has already taken a proactive step by applying for Bitcoin spot ETFs with the Securities and Exchange Commission in mid-January.
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Crypto Regulations