Hong Kong may approve spot BTC ETF in April, expected to lead Asia

Source: Blockchain Knights

Hong Kong is about to achieve a major achievement, becoming the first city in Asia to offer spot BTC ETFs.

Sources familiar with the matter revealed that Hong Kong may announce the approval of these ETFs as early as this month, which is much earlier than the industry had previously expected.

Hong Kong regulators have accelerated the approval process, showing that Hong Kong is determined to enhance its status as a global trading center, Reuters reported on Wednesday.

Pandemic restrictions, domestic economic challenges, and escalating Sino-US tensions have all weakened Hong Kong's appeal, so the authorities are eager to increase Hong Kong's attractiveness for financial transactions.

The approval of spot BTC ETFs in Hong Kong may have the following meanings.

Adrian Wang, CEO of Hong Kong Crypto asset wealth management company Metalpha, believes that this may attract new global investment to Hong Kong and take the adoption of Crypto assets to new heights.

In January this year, the first US-listed spot BTC ETFs were launched in the United States, attracting about $12 billion in net inflows, according to BitMEX Research.

The development highlights the growing interest in crypto assets and their potential as investment assets.

BTC is the leader among crypto assets, with prices soaring more than 60% this year, reaching an all-time high of $73,803 in March.

On Wednesday, BTC was trading at around $69,000, indicating strong investor interest in digital assets and market momentum.

According to Reuters, at least four asset management companies from mainland China and Hong Kong have applied to launch spot BTC ETFs.

These include China Asset Management, Harvest Fund Management, the Hong Kong unit of Bosera Asset Management, and other undisclosed entities.

Despite the ban on crypto asset trading in mainland China, Chinese financial institutions headquartered outside the country have expressed strong interest in participating in the development of crypto assets in Hong Kong.

The trend coincides with Hong Kong’s efforts to position itself as the region’s leading digital asset hub.

In late 2022, Hong Kong approved its first batch of ETFs focused on Crypto asset futures. The largest of these is the CSOPBTC Futures ETF (3066.HK), whose assets under management have surged sevenfold since September to about $120 million.

Another Hong Kong-based asset manager, Value Partners, has expressed interest in launching a spot BTC ETF, but has not yet confirmed whether it has submitted an application.

Overall,Hong Kong’s impending approval of a spot BTC ETF marks an important step in the development of the Crypto asset market. It could pave the way for more institutional participation and investment in digital assets in the region.