The Hong Kong Securities Regulatory Commission (SFC) is reportedly fast-tracking the approval process for four spot Bitcoin (BTC) exchange-traded funds (ETFs). According to Tencent News, the first batch of spot Bitcoin ETFs is expected to be approved in the region by April 15. Sources close to the SFC have revealed that the regulator initially planned to approve only these four ETFs in the first batch. Recent announcements indicate that Boshi Fund and Value Partners Financial are likely to join pending regulatory approval, while Harvest International and China Asset Management have already made progress in leading the way for this cryptocurrency investment advancement.
Once the initial set of spot Bitcoin ETFs is approved by the Hong Kong Securities and Futures Commission, the Hong Kong Stock Exchange will require approximately two weeks to complete the listing procedures and related arrangements. The upcoming endorsement of spot Bitcoin ETFs in Hong Kong presents numerous opportunities for institutional and individual investors. With retail investors gaining access to Bitcoin investments through ETF purchases, the investment landscape is on the verge of a significant transformation.
In a keynote speech at the HSBC Global Investment Summit, Julia Leung, the CEO of the SFC, emphasized the responsible use of innovative technologies such as distributed ledger technology and tokenization to enhance efficiency in the financial industry, while also ensuring investor protection. Leung also highlighted efforts to align corporate reporting standards with sustainability disclosure standards and promote informed investment decisions aligned with sustainability goals.
The approval of spot Bitcoin ETFs in Hong Kong is expected to occur about three months after the Securities and Exchange Commission approved the first batch in the United States. Currently, the top 10 spot Bitcoin ETFs manage approximately $57 billion in assets, with the leading three representing over 88% of the total. Traditional institutional investors are showing increased interest in cryptocurrencies as stock market performance remains lackluster.
To encourage local adoption of Web3, ZA Bank in Hong Kong recently announced plans for specialized banking services for stablecoin issuers, including secure custody for fiat reserves to collateralize digital assets.
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