The Hong Kong Securities Regulatory Commission (SFC) is said to be fast-tracking the approval process for four Bitcoin exchange-traded funds (ETFs). According to Tencent News, the first batch of these ETFs is expected to be approved by April 15th. Sources close to the SFC have revealed that initially, the regulator planned to approve only four spot Bitcoin ETFs in the first batch. Recent developments 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 receives approval from the SFC, the Hong Kong Stock Exchange will take approximately two weeks to finalize 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.
During a keynote speech at the HSBC Global Investment Summit, Julia Leung, CEO of the SFC, stressed the importance of responsible use of innovative technologies such as distributed ledger technology and tokenization to enhance efficiency in the financial industry while ensuring investor protection. Leung also highlighted efforts to align corporate reporting standards with sustainability disclosure standards and promote informed investment decisions that align with sustainability goals.
The anticipated approval of spot Bitcoin ETFs in Hong Kong would come approximately three months after the Securities and Exchange Commission approved the first batch in the United States. Currently, the top 10 spot Bitcoin ETFs manage around $57 billion in assets, with the leading trio accounting for over 88% of the total.
As stock market performance becomes lackluster, traditional institutional investors are showing increased interest in cryptocurrency. To encourage local adoption of Web3 technology, 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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