The successful US launch of a spot bitcoin ETF is expected to help bring Hong Kong regulators closer to allowing similar cryptocurrency funds to operate in the city.
Spot cryptocurrency ETFs enable investors to gain exposure to virtual assets without purchasing any crypto tokens directly.
This money “gives the cryptocurrency industry more legitimacy and also opens up more cooperation opportunities with mainstream finance,” said RJK, a researcher at Ethereum scaling startup Tyco. “Hong Kong is likely to accelerate orders for Bitcoin ETFs in the coming months.”
The US Securities and Exchange Commission (SEC) allows spot bitcoin ETFs in the cryptocurrency hack
The US Securities and Exchange Commission (SEC) allows spot bitcoin ETFs in the cryptocurrency hack
Mao Shisheng, also known as Discus Fish, said Hong Kong needs to launch virtual asset ETFs as soon as possible to “ensure the city remains competitive in the global cryptocurrency market and strengthen its position as a global financial center.” He is the co-founder and CEO of digital asset custody solutions provider Cobo.
US approvals could impact other jurisdictions because “the SEC is one of the most influential and reputable financial regulators in the world,” Mao said, adding that the agency’s initiatives “often serve as important references for financial regulators in other countries and regions.” “.
“However, each country and region has its own independent position and regulatory objectives,” he added.
Hong Kong will push retail access to cryptocurrency exchange-traded funds
Hong Kong will push retail access to cryptocurrency exchange-traded funds
Echoing the view of the Kobo boss, Donald Day, chief operating officer of digital asset platform VDX, said the SEC’s decision will make its peers “seriously consider whether similar ETFs are permissible and desirable.”
Dai noted that the SEC’s December statement on willingness to allow such funds “opened in principle a path for issuers to launch spot cryptocurrency ETFs in Hong Kong.”
But mainland China is unlikely to follow China’s lead.
Beijing sets national plan to develop Web3 amid strict ban on cryptocurrencies
Beijing sets national plan to develop Web3 amid strict ban on cryptocurrencies
The Chinese government banned banks from handling bitcoin in 2013 and forced cryptocurrency exchanges to move offshore in 2017. In 2021, the country’s regulators reiterated a state ban on all financial institutions from engaging in cryptocurrency-related activities.
Chinese state media recently emphasized the risks involved in cryptocurrency ETFs.
US approval of spot bitcoin ETFs “would make the cryptocurrency market even crazier, providing fertile ground for illegal transactions such as money laundering,” according to a report by International Financial News, a newspaper affiliated with People’s Daily, citing Shanghai Jiao. Tong University Assistant Professor Li Nan.