According to Singtao, a local media outlet in Hong Kong, the nation’s financial sector is gearing up for substantial expansion in the Bitcoin ETF arena. Ten financial institutions are reportedly preparing to submit applications to launch Bitcoin spot exchange-traded funds (ETFs).
Per the report, it has been nearly two months since the launch of the first Bitcoin spot ETF in the United States, which attracted over $6 billion in net inflows and currently boasts assets under management of over $50 billion. In contrast, despite opening applications for Bitcoin spot ETFs at the end of December last year, as reported by Bloomberg, Hong Kong’s market has yet to witness the introduction of any such products. This gap in the market is perceived as a potential risk for local investors, who may find themselves at a competitive disadvantage compared to investors in the West.
The report also highlighted the stark contrast between Bitcoin’s strong performance in the U.S., with a cumulative net inflow of $2.24 billion in February and a price peak of $70,330, and the absence of similar investment opportunities in Asia. This disparity has drawn significant attention, especially considering the success of two Hong Kong Bitcoin futures ETFs, the CSOP Bitcoin ETF and the Samsung Bitcoin ETF, both of which have seen remarkable gains.
Charles d’Haussy, CEO of HashKey Exchange and COO of HashKey Group, was quoted regarding the impact of the U.S. Bitcoin spot ETFs on the virtual asset trading market’s rapid ascent. He pointed out the lack of equivalent ETF products in Asia and stressed the importance of Hong Kong launching its own spot ETFs and derivative trading products promptly to mitigate potential risks for Asian investors.
As of now, the exact number of Bitcoin spot ETFs to be listed in Hong Kong is yet to be determined, pending authorization by the Securities and Futures Commission (SFC). However, the anticipation surrounding the potential introduction of an Ethereum spot ETF is mounting. Ongoing discussions and preparations signal Hong Kong’s ambitions to secure a competitive advantage in the cryptocurrency investment arena. D’haussy believes that the launch of Hong Kong’s Ethereum spot ETF ahead of the U.S. could position Hong Kong as a frontrunner in the global crypto market.
The Hong Kong Securities and Futures Commission (SFC) received an application for a spot Bitcoin ETF from Harvest Hong Kong on January 26 after the U.S. approved its first spot BTC ETF. Per the Bloomberg report cited previously, this is a move toward potential listing on the Hong Kong Stock Exchange in the coming months.
