Hong Kong is poised to approve Asia's first spot bitcoin exchange-traded funds (ETFs) this month, with the first approvals likely to be announced next week, according to people familiar with the matter, as reported by Reuters and Chinese news media, QQ.
BREAKING: 🇭🇰 Hong Kong set to approve venue #Bitcoin Reports point to ETFs next week.
are you ready? 🚀 pic.twitter.com/gsAfBx6Nmj
— Bitcoin Magazine (@BitcoinMagazine) April 10, 2024
The Hong Kong Securities and Futures Commission (SFC) has expedited the approval process, making Hong Kong a leader in Bitcoin ETFs in Asia. The move comes ahead of industry expectations for its launch later this year.
Several Chinese financial institutions, including Hong Kong-based affiliates of Harvest Fund and China Southern Fund, have applied for bitcoin ETFs recently. Spot Bitcoin ETFs provide exposure to actual Bitcoin rather than derivatives.
According to sources, the SEC will announce the first approved batch of spot Bitcoin ETFs on April 15. Following approvals, the funds can then be applied for listing on the Hong Kong Stock Exchange, which is expected to take 10 days.
This accelerated timeline demonstrates Hong Kong's proactive approach to enhancing its attractiveness as a global financial centre. It also builds on the city's bitcoin-friendly stance, including granting cryptocurrency exchange Hashkey a retail trading license last year.
This news comes after the huge success of spot Bitcoin ETFs in the US after their approval last January, which attracted inflows of more than $12 billion. As the first Asian jurisdiction to approve spot bitcoin ETFs, Hong Kong is paving the way for potential launches in other markets.
Accessible Bitcoin investment products have seen rapid growth in demand among institutional and retail investors. By leveraging its regulatory framework to meet this desire, Hong Kong is strengthening its position as a rising Bitcoin hub in Asia.
