Hong Kong is poised to approve Asia’s first spot bitcoin exchange-traded funds (ETFs) this month, and the first approvals are likely to be announced next week, according to people familiar with the matter, as reported by Reuters and Chinese news media, qq.Â
BREAKING: ðŸ‡ðŸ‡° Hong Kong is set to approve spot #Bitcoin ETFs next week, reports indicate.
Are you prepared? 🚀 pic.twitter.com/gsAfBx6Nmj
— Bitcoin Magazine (@BitcoinMagazine) April 10, 2024
The Hong Kong Securities and Futures Commission (SFC) has expedited the approval process, positioning Hong Kong as a pioneer in Asia’s Bitcoin ETF space. The move comes ahead of industry expectations for launches later this year.
Multiple Chinese financial institutions, including the Hong Kong subsidiaries of Harvest Fund and China Southern Fund, have applied for bitcoin ETFs recently. Spot bitcoin ETFs provide exposure to actual bitcoin rather than derivatives.
According to sources, the SFC will announce its first approved batch of spot bitcoin ETFs on April 15. After approvals, the funds can then be applied to be listed on the Hong Kong Stock Exchange, which is expected to take 10 days.
This accelerated timeline demonstrates Hong Kong’s proactive approach in enhancing its appeal as a global financial hub. It also builds on the city’s Bitcoin-friendly stance, including granting crypto exchange Hashkey a retail trading license last year.
The news comes after the tremendous success of spot bitcoin ETFs in the United States after approval this January, which attracted over $12 billion in inflows. As the first Asian jurisdiction to approve spot bitcoin ETFs, Hong Kong is paving the way for potential launches in other markets.
Accessible Bitcoin investment products have seen rapid growth in demand among both institutional and retail investors. By leveraging its regulatory framework to meet this appetite, Hong Kong cements its position as a rising Bitcoin hub in Asia.
