In Light of the Anticipated Us Clearance, Industry Executives View Hong Kong as the Next Bitcoin ETF Hub

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Last Updated on December 25, 2023 by Bitfinsider

Industry insiders believe Hong Kong, a financial powerhouse that became a cryptocurrency friendly place last year, may be among the first in Asia to allow spot bitcoin exchange-traded funds (ETFs) should the United States accept them.

The supportive attitude of Hong Kong’s Securities and Futures Commission toward digital assets, according to Yat Siu, chairman of web3 investor Animoca Brands, sets a respectable platform for possible spot bitcoin ETFs, he told The Block.

“The SFC stated, I believe, a month ago that it was willing to expand access to digital assets,” Siu remarked. “To be honest, the Bitcoin spot ETF is ultimately quite uncontroversial,” the author says.

The United States is getting closer to approving its first spot bitcoin exchange-traded fund (ETF), as it has made many submissions that address the SEC’s requirements regarding creation and redemption methods.

Siu continued, “I would imagine that [Hong Kong] would follow, especially since the U.S. has already done a lot of the work,” pointing out that the Hong Kong authorities have access to a plethora of public files and petitions.

In contrast to the wider crackdown on cryptocurrency mining and trade on the Chinese mainland, Hong Kong has welcomed cryptocurrency companies this year, even pushing banks to collaborate with them.

To bolster its standing as a major international financial hub, Hong Kong authorities issued a number of policy pronouncements about cryptocurrencies in October 2022. With the official launch of its cryptocurrency licensing program in June, Hong Kong now permits licensed exchanges to provide retail trading services for virtual asset trading platforms.

The SFC in Hong Kong, led by Julia Leung, stated in November that the agency was reviewing spot cryptocurrency exchange-traded funds (ETFs) and that it was open to “proposals using innovative technology that boosts efficiency and customer experience.” The Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF are among the various futures-based cryptocurrency ETFs that are presently listed in Hong Kong.

In an interview this month, Glenn Woo, Head of Sales of APAC at web3 infrastructure company Blockdaemon, repeated the optimistic outlook. “The spirit is definitely there,” he said, even though traditional asset managers still have some reservations.

“There is a demand there,” Woo, who has worked in Hong Kong’s traditional banking sector for more than ten years, stated. “The appetite will grow after the U.S. approves their ETF first; I’m not sure whether it will launch next year or the year after.”

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