Source: zycrypto
Compiled by: Blockchain Knight
Hong Kong is about to achieve a major achievement by becoming the first city in Asia to offer a spot BTC ETF.
Sources familiar with the matter revealed that Hong Kong may announce approval of these ETFs as early as this month, which is much earlier than the industry had previously expected.
Hong Kong regulators have accelerated the approval process, Reuters reported on Wednesday, showing the city's determination to boost its status as a global trading hub.
Authorities are eager to boost Hong Kong’s appeal for financial deals as pandemic restrictions, economic challenges at home and escalating U.S.-China tensions have dented the city’s appeal.
The approval of the spot BTC ETF in Hong Kong may have the following implications.
Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto asset wealth management company, believes this could attract new global investment to Hong Kong and boost the adoption of crypto assets to new heights.
According to BitMEX Research, the first batch of U.S.-listed spot BTC ETFs were launched in January this year, attracting about $12 billion in net inflows.
This development highlights the growing interest in Crypto assets and their potential as investment assets.
BTC is the leader among crypto assets, with its price soaring more than 60% this year, reaching an all-time high of $73,803 in March.
On Wednesday, BTC was trading around $69,000, indicating strong investor interest and market momentum in digital assets.
According to Reuters, at least four asset management companies from mainland China and Hong Kong have applied to launch spot BTC ETFs, including China Asset Management, Harvest Fund Management, the Hong Kong branch of Bosera Asset Management, and other undisclosed entities.
Although crypto asset trading is prohibited in mainland China, Chinese financial institutions headquartered outside of China have expressed strong interest in participating in the development of crypto assets in Hong Kong.
The trend coincides with Hong Kong’s efforts to position itself as the region’s leading digital asset hub.
Hong Kong approved the first batch of ETFs focusing on crypto asset futures at the end of 2022. The largest of these is the CSOPBTC Futures ETF (3066.HK), whose assets under management have surged sevenfold since September to approximately $120 million.
Another Hong Kong-based asset manager, Value Partners, has expressed interest in launching a spot BTC ETF but has yet to confirm whether it has filed an application.
Overall, Hong Kong’s upcoming approval of a spot BTC ETF marks an important step in the development of the Crypto asset market. It could pave the way for more institutional participation and investment in digital assets in the region.
