Hong Kong on Verge of Approving First Bitcoin ETFs

Hong Kong's financial regulatory authority is on the verge of endorsing the initial wave of bitcoin spot ETFs., reports Finextra. This step would mark Hong Kong as the inaugural jurisdiction within the Asia-Pacific realm to sanction a cryptocurrency-backed, exchange-traded investment vehicle, positioning the territory prominently in the competition to establish itself as the hub for digital assets in the region. As per a report by Reuters, the Securities and Futures Commission (SFC) is anticipated to grant the approval later in the current month.

To date, there have been four submissions from entities headquartered in mainland China, encompassing Harvest Fund Management, China Asset Management, and Bosera Asset Management. Harvest and CAM have already received consent from the SFC to furnish services pertaining to fund management related to virtual assets.

By endorsing the applications for crypto ETFs, Hong Kong would be mirroring the United States, which authorized the debut of the first spot bitcoin ETFs in January, albeit following legal actions instigated by several cryptocurrency trading firms. These US-based ETFs have amassed a collective total of over $58 billion in assets thus far.

Nonetheless, it's improbable that Hong Kong's funds market will witness a parallel level of investment. Nevertheless, the territory hopes that these approvals will furnish a stimulus amidst the challenges posed by China's economic deceleration and the lingering effects of the pandemic, including stringent travel constraints that have impeded Hong Kong asset managers from attracting and retaining top-tier talent.