Hong Kong approves BTC and ETH ETFs, seeking to seize U.S. ETH leadership

Hong Kong's Securities and Futures Commission approved the first batch of Bitcoin and Ethereum spot ETFs on Monday (15th), making Hong Kong the first city in Asia to accept popular cryptocurrencies as a major investment tool. It also approved Ethereum spot ETFs earlier than the United States. Hong Kong is serious this time. Unlike the United States, even Ethereum spot ETFs will be approved and physical redemptions will be supported. The United States currently only supports cash redemptions of BTC spot ETFs.

Hong Kong BTC’s ETF begins to undergo regulatory review in Hong Kong on January 26

After the United States approved a spot BTC ETF, Hong Kong is expected to follow suit. The Hong Kong Securities and Futures Commission (SFC) began reviewing the first spot Bitcoin ETF application on January 26, 2024. The application was submitted by Harvest Hong Kong, one of China's largest fund management companies.

According to Tencent News, regulatory agencies are actively working to speed up the approval process of domestic ETFs and will launch the first Hong Kong spot Bitcoin ETF after the Lunar New Year on February 10.

Hong Kong regulators may follow the lead of the U.S. SEC and approve multiple spot ETFs to ensure a level playing field. Several regional financial institutions have expressed interest in launching a spot BTC ETF in 2024.

Asset manager VSFG and its partner Value Partners have applied to Hong Kong’s Securities and Futures Commission (SFC) for a spot Bitcoin exchange-traded fund (ETF). It has been reported earlier that 10 financial institutions have planned to apply to launch Bitcoin spot ETFs in Hong Kong.

Hong Kong forces first bid for leadership of ETH’s ETF

Regarding the specific listing number of the first batch of Bitcoin spot ETFs in Hong Kong, Weng Xiaoqi pointed out that this needs to be determined and authorized by the China Securities Regulatory Commission. However, considering that the United States has authorized the trading of 11 Bitcoin spot ETFs, it is expected that the first batch of ETFs listed in Hong Kong may be less than this number. Considering that the capital size of the Hong Kong stock market is quite different from that of the United States, it is believed that concentrated liquidity means limiting Bitcoin. The number of currency spot ETF listings is more beneficial to the development of Hong Kong. He emphasized that Ethereum spot ETF is currently the most anticipated product by global crypto investors. Hong Kong’s Ethereum spot ETF is under intensive discussion and preparation. If related products can be launched earlier than the United States, Hong Kong will have the opportunity to compete in the global encryption market. , from followers to leaders.

At present, "Boshi Fund (International) and HashKey Capital", "China Asset Management (Hong Kong) and OSL Digital Securites" respectively announced on Monday that they have obtained approval from the Hong Kong Securities Regulatory Commission to allow the issuance of Bitcoin and Ethereum spot ETFs; Harvest International stated that it has Products approved to invest in two major cryptocurrency spot ETFs.

The launch of Hong Kong ETF estimates that US$25B of funds will flow into cryptocurrency

Matrixport predicted in a report that a Hong Kong-listed Bitcoin ETF could unleash up to $25 billion in demand, CoinDesk reported. The report believes that up to $25 billion in funds could flow from mainland China if a Hong Kong-listed Bitcoin spot ETF is approved, as mainland investors take advantage of the Southbound Link scheme. Of course, according to current regulations, it is still difficult for the mainland to participate. It not only has to face restrictions on foreign exchange funds, but also has to deal with KYC problems. In terms of opening bank cards and exchange accounts, it is almost difficult for mainland participants to participate.