Even Hong Kong is ready to approve Bitcoin Spot ETFs

After the approval of the Spot Bitcoin ETF by the SEC in the USA, even the regulatory authorities in Hong Kong are ready to approve the requests for the ETF. 

The recent milestone that involved US regulatory authorities has led to a domino effect that has affected the entire globe. 

The Hong Kong Security and Future Commission is ready to approve the Spot Bitcoin ETF

The news of the approval of the Bitcoin Spot ETF, which took place on January 10th, has revolutionized the crypto sector and especially the regulatory authorities’ view of Bitcoin.

In particular, the SEC, which with its President Gensler seemed very reluctant to approve the ETF. 

The news, therefore, besides arousing strong interest among investors, has also prompted financial regulatory authorities in various parts of the world to wonder if it was the right choice.

Among these is also the Security and Future Commission (SFC) of Hong Kong, which is now ready to accept the requests received for the spot ETF of Bitcoin.

Since the end of December, Hong Kong had paved the way for any request for crypto Spot ETFs. 

The regulator, in fact, with a joint circular to the Monetary Authority (the Central Bank of the city) had stated that they were reviewing their existing policy for intermediaries wishing to engage in this type of activity related to digital assets. 

In the course of 2023, Hong Kong has shown itself to be much more open to embracing the crypto sector. Unlike China, which has been fighting against the sector for years, Hong Kong has opened up much more, even going so far as to encourage banks to work with the cryptographic sector. 

“They are very welcoming towards the cryptocurrency industry and would potentially be among the first to approve a spot cryptocurrency ETF by a developed financial market”,

Jason Chan, partner of the law firm Howse Williams based in Hong Kong, stated.

10 asset managers in Hong Kong ready to launch spot Bitcoin and crypto ETFs

The Chief Operating Officer of one of the most important crypto exchanges licensed in Hong Kong, HashKey, has stated that about 10 local companies are ready to launch crypto spot exchange-traded funds.

HashKey, which received a license from the Securities and Futures Commission in August to provide retail cryptocurrency trading services, has confirmed that it could participate in a potential spot crypto ETF in Hong Kong through two main aspects: engaging in ETF-related crypto transactions and providing custody services.

The forecast is that Hong Kong will be another pioneer towards the idea of Spot ETFs on cryptocurrencies. 

The intention of the regulatory authorities in Hong Kong is to have platforms authorized by themselves or authorized financial institutions that provide this service, in order to improve legal traffic.

The approval of ETFs could have a greater impact in Asia than in Europe

The regulatory clarity that a Bitcoin spot ETF has brought, will most likely lead to a greater impact and a significant opening up of capitalist activities in Asia. 

Although in recent years, cryptocurrencies in the Asian continent have been more or less set aside, the approval of the SEC for the spot Bitcoin ETF opens the way for Asian investors to greater investment security. 

“There is regulatory clarity and there is this willingness on the part of governments and regulatory authorities to build this ecosystem and participate and see the opportunities that are out there,”

the statements of Yat Siu, co-founder of Animoca Brands, based in Hong Kong. 

Siu emphasized that Asian investors, especially the younger generations, are on average more open to capitalism compared to their American counterparts. 

“If I have to put it this way, I would say that the American dream is more alive in Asia than in America. Even though there are inequalities in Asia, obviously capitalism has greatly benefited this and the last generation. I mean, look at China, South Korea, Southeast Asia, these are all countries that 30 years ago were literally nowhere, in many cases they had nothing”,

explained the co-founder of Animoca.

Conclusions 

To conclude, among the many opportunities brought by the SEC-approved Bitcoin ETF, one of the most important is the opening to Asian markets.

In particular, Hong Kong and their regulatory authority SFC could prove to be the next to launch the spot ETF. The independent Asian region has seen a significant opening to the crypto sector in the last year, carefully considering how to regulate the issue.

Asia is preparing to relaunch itself in a sector that seemed not to concern it, but with the revolution brought about by the approval of the SEC, things could change.