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Hong Kong Calling: Spot Bitcoin ETFs Done Deal by Next Week Sources Say
- Bitcoin ETFs gain global momentum after US approval, with South Korea, the UK, and others eyeing the lucrative market.
- Hong Kong’s rapid approval process may position it as Asia’s first to offer Bitcoin spot ETFs, boosting its financial hub status.
- In South Korea, political parties promise access to US-based Bitcoin ETFs to garner support in upcoming elections.
Crypto and especially Bitcoin exchange-traded funds (ETFs) are shaping up to be one of the hottest topics of 2024. After the US approvals of several Spot Bitcoin ETFs in January – which was one of the most impressive launches of any ETF in history – now other jurisdictions, such as South Korea, the United Kingdom and others are looking closely at exchanged traded products such as ETFs and ETNs (exchange-traded notes, a type of unsecured debt security).
As CNA reported earlier, Chinese financial heavyweights Harvest Fund and Southern Fund have recently filed to list Bitcoin spot ETFs in Hong Kong. Now only days later, Reuters reports these funds could be approved much sooner than expected.
Related: Chinese Investors’ FOMO Craze Fuels Surge into US ETFs, Sparking Speculation about Crypto Influx
The industry had anticipated launches later in the year, but as Reuters stated, people close to the matter said that regulators have expedited the process, which would make Hong Kong the first destination in Asia to offer the products.
According to Reuters there are at least four fund managers from mainland China and Hong Kong having applied for ETFs in a bid to revive Hong Kong’s former glory as a financial hub in Asia. Among the applicants are China Asset Management, Bosera Asset Management and Harvest Fund Management.
The Hong Kong regulator, the Securities and Futures Commission (SFC) and the companies in question have so far not responded to media requests and the people close to the source could not be mentioned as they had not been authorised to speak to media.
South Koreans May Be Getting Access to US ETFs
The Asia-Pacific region has so far not seen much traction in crypto ETF approval, lagging behind the US, UK and EU. While Australia had previously had Spot Bitcoin ETFs, the interest was lacklustre.
Australian investment management firm Monochrome Asset Management has announced recently its plan to shift its application for the Monochrome Bitcoin ETF to Cboe Australia. According to a statement, the ETF would be the first to allow Australians to directly hold BTC in such a fund.
Meanwhile, further to the northeast, in South Korea, and just ahead of the country’s parliamentary elections, major political parties are offering cryptocurrency-related benefits to win voter support – South Koreans are generally very enthusiastic when it comes to crypto.
A Bloomberg report highlighted that the opposition Democratic Party plans to lift bans on both domestic and international crypto token-holding exchange-traded funds (ETFs), including US-based spot Bitcoin ETFs. This move comes after the United States approval of Bitcoin ETFs in January – however, South Korea’s securities regulator has warned about potential violations of local laws by allowing access these ETFs.
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
