Hong Kong has recently approved multiple ETFs (exchange-traded funds), tracking Bitcoin (BTC) and Ethereum (ETH) spot prices. This is an important regulatory move for Hong Kong, which is positioning itself as a leading financial hub for cryptocurrencies. It also signifies that it has diverged from mainland China’s strict regulations regarding crypto.
Following the approvals, Bitcoin (BTC) recovered from its recent dip on April 14. Because of geopolitical tensions, it has bounced back from above $70,000 to $61,000. Parth Chaturvedi from CoinSwitch Ventures has highlighted these Spot ETFs’ potential to make crypto more accessible to beginners in the investment market and anticipates significant investment flows into the crypto market of Hong Kong.
Also read: Hong Kong SFC Approves Spot Bitcoin & Ethereum ETFs
Spot Ether ETFs Gain Competitive Edge
The preliminary approval of spot Ether ETFs of Hong Kong has drawn attention. It has done so especially from OSL’s Gary Tiu. He highlighted that Hong Kong is now ahead of the United States, because it has yet to approve any products of spot Ether. A former regulator at the Monetary Authority of Singapore, Angela Ang views this as an essential step for the ambitions of Hong Kong’s crypto. She has highlighted the growing demand for Ethereum exposure.
ETFs Nearing Public Offering
With the Hong Kong Securities and Futures Commission’s (SFC) in-principle approval, these ETFs are approaching readiness for public offering. While technically close to launch, there are still some technical conditions to fulfill before the official launch.
Upcoming ETFs from Bosera Asset Management and HashKey Capital will offer in-kind subscription and redemption options, allowing direct use of Bitcoin and Ether. Tiu emphasized the substantial support needed for this feature, especially in the retail fund space. As seen in the U.S., where spot Bitcoin ETF approvals led to a fee war, Tiu predicts a similar competitive environment in Hong Kong.
There’s speculation about mainland Chinese investors showing interest via the Southbound Stock Connect program. However, mainland investors cannot access these ETFs through the Stock Connect program. Despite this, there’s optimism for potential inclusion in the future.
Also read: Hong Kong Sees 10 Financial Institutions Apply For Spot Bitcoin and Ethereum ETFs
Read More: Spot Ether ETFs: Hong Kong Surpasses US in Crypto Investment Products
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