- Months after the US Securities and Exchange Commission approved its first-ever spot Bitcoin ETF, Hong Kong’s Securities and Futures Commission (SFC) is reportedly on the verge of agreeing on a similar product in Hong Kong.
- It is reported that four mainland Chinese and Hong Kong Asset Managers have submitted their applications to this effect.
An asset manager in China, Harvest Fund Management, is reportedly in line to receive approval from Hong Kong’s Securities and Futures Commission (SFC) to launch a spot Bitcoin (BTC) Exchange-Traded Fund (ETF) as early as this month. Bloomberg first reported this, citing two anonymous individuals believed to be close to the matter.
According to the report, four mainland Chinese and Hong Kong Asset Managers have so far submitted applications. Among them include the Hong Kong units of China Asset Management, and Bosera Asset Management. Many other asset managers including Hong Kong-based Value Partners have also disclosed their intention to explore the possibility of launching a spot Bitcoin ETF as published by local news outlets.
Initial attempts to get more details from SFC and the three Chinese companies proved futile as they declined to comment. Regardless, Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto wealth manager, commented on the impact of an ETF-related product approval on the overall crypto industry.
The significance of Hong Kong ETFs is far-reaching as they could bring in fresh global investment and push crypto adoption to a new height.
Pending the ETF decision, the China Asset Management and Harvest Fund Management’s Hong Kong units have received the green light to manage portfolios that invest more than 10% of virtual assets.
Hong Kong’s Spot Bitcoin ETF Could Accelerate Crypto Adoption
In 2021, mainland China banned all “virtual currency-related business activities,” claiming it endangers the safety of people’s assets as reported by Crypto News Flash. That resulted in Bitcoin falling by more than $2000. According to the latest development, offshore Chinese financial institutions could participate in the crypto development in Hong Kong. To most market analysts, the potential approval of a spot Bitcoin ETF in Hong Kong could be one of the biggest market-moving events this year.
As disclosed by Statista, the number of crypto users in Hong Kong is expected to reach 1.68m by 2028. The user penetration would be 18.94% in 2024 and 21.22% by 2028. This implies that the potential ETF approval could accelerate crypto adoption and drive billions of dollars into the market.
Bloomberg Intelligence analyst Eric Balchunas also spoke about how local investors are desperate for gold ETF in China.
Wild stuff in China as local investors pile into a gold stock ETF pushing its premium to 30% and forcing it to halt trading. Investors are so desperate to buy things that are not linked to their own economy or stock market, which has been in the gutter. For those wondering buying bitcoin ETFs is not allowed there. If it were my guess is they’d be going gaga for them given how much fomo [fear of missing out]they have been showing for gold and U.S. stocks.
At press time, Bitcoin was trading at $67,280 after declining by 5% in the last 24 hours and 8% in the last 30 days.
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Source: https://www.crypto-news-flash.com/china-etf-leak-potential-game-changer-for-bitcoin-and-crypto-market-revealed/?utm_source=rss&utm_medium=rss&utm_campaign=china-etf-leak-potential-game-changer-for-bitcoin-and-crypto-market-revealed