Spot Bitcoin ETF approvals in the US inspire ambition among Hong Kong industry insiders

Involved:

• Industry insiders in Hong Kong are pressuring regulators to approve cryptocurrency exchange-traded funds (ETFs).
• This comes after the US approved spot bitcoin ETFs, revitalizing the Asian country’s desire to become a major hub for virtual assets in Asia.
• The city’s SFC committee unveiled plans to allow retail access to virtual asset ETFs in December 2023, and may follow suit soon.

Bitcoin spot exchange-traded funds (ETFs) have been the main topic in the US market over the past few months, peaking on January 10. And so when the US Securities and Exchange Commission (SEC) approved all eleven investment products to launch, with trading starting on January 11.

Also Read: Grayscale Flows Close to $600M in Third Trading Day as GBTC Holders Benefit from Instant BTC ETF Approvals

Industry insiders in Hong Kong want a spot cryptocurrency ETF of their own

In fact, the global community has been watching the developments in the US Spot BTC ETF campaign from the sidelines, with Hong Kong now demanding a similar investment product of its own. Local media report that industry insiders are pushing “local regulators to increase approvals to boost the city’s competitiveness in the global cryptocurrency market.”

Specifically, and in line with the city’s ambition to become a major hub for virtual assets in Asia, Hong Kong insiders want to gain approval for spot crypto ETFs, so that they can also, like the US market, gain exposure to virtual assets without purchasing any crypto tokens directly. . . It is possible that city regulators will move to do so after landmark approvals in the United States.

Quoting the co-founder and CEO of digital asset custody solutions provider Cobo, Mao Shixing, known as “Discus Fish.”

(Hong Kong needs to launch virtual asset ETFs as soon as possible in order to) ensure that the city remains competitive in the global cryptocurrency market and strengthen its position as a global financial center.

Notably, Hong Kong’s Securities and Futures Commission (SFC) has demonstrated its willingness to allow retail access to virtual asset ETFs in December 2023. Among the industry insiders pushing for this development is CSOP Asset Management’s head of quantitative investing, Wang Yi. Her company currently manages two cryptocurrency futures ETFs.

In a January 10 interview with Chinese media, Liviu Wong, chief operating officer of cryptocurrency trading app operator HashKey Group, revealed that about 10 fund management companies are preparing to launch virtual asset-backed ETFs in Hong Kong, with as many as eight… From these boxes. Players are already at an “advanced stage” to launch.

CoinGecko, a market analysis firm, notes that in addition to the US, there are now eight global markets that allow spot cryptocurrency ETF operations. These include Canada, Germany, Switzerland and tax havens such as the Cayman Islands in the Caribbean and Jersey near the coast of northwest France. According to Mao, US approvals could impact other jurisdictions because “the SEC is one of the most influential and reputable financial regulatory bodies in the world.”

Mao also highlighted that SEC initiatives “often serve as important references for financial regulators in other countries and regions,” with Donald Day, chief operating officer of digital asset platform VDX, emphasizing that the SEC’s decision would make… Its peers are “seriously considering whether similar ETFs would be permissible and desirable.”