Hong Kong said it is close to approving its first spot bitcoin ETFs.

Spot Bitcoin Exchange-traded funds could be launched in Hong Kong this month, with the first approval to be announced next week, two people familiar with the matter said.

That timeline would make Hong Kong the first city in Asia to offer a popular one. ETFs And much faster than industry expectations for a launch sometime this year.

Regulators have accelerated the approval process, according to one of the people.

After losing its luster as a global financial center due to restrictions during the pandemic, China’s declining economy and Sino-US tensions, Hong Kong authorities have sought to improve the city’s attractiveness for financial trade. Can do something they want to do.

“The significance of Hong Kong ETFs is far-reaching as it could drive crypto adoption to new heights alongside fresh global investment,” said Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto wealth manager.

The US launched the first US-listed exchange-traded funds (ETFs) to track spot bitcoin in January, raising about $12 billion (about Rs 99,987 crore), data from BitMEX Research showed. Arrived.

Bitcoin has gained more than 60 percent this year and touched an all-time high of $73,803 (roughly Rs. 61.5 lakh) in March. It was trading at around $69,000 (roughly Rs 57.5 lakh) on Wednesday.

At least four mainland Chinese and Hong Kong asset managers have submitted applications to launch ETFs, two of the sources said.

Hong Kong-based China Asset Management, Harvest Fund Management and Bocera Asset Management are among the applicants, according to two people and a third source.

The sources were not authorized to speak to the media and declined to be identified.

Hong Kong’s Securities and Futures Commission (SFC) and the three Chinese companies declined to comment.

The Hong Kong units of China Asset Management and Harvest Fund Management received approval this month to manage portfolios that invest more than 10 percent in virtual assets, according to the SFC’s website.

Their parent companies are among China’s largest mutual fund firms, each managing over CNY 1 trillion ($138 billion or approximately Rs 11,49,963 crore) in assets.

Although Cryptocurrency As trading is restricted in mainland China, foreign Chinese financial institutions are eager to participate in crypto asset development in Hong Kong.

Hong Kong approves its first ETFs for cryptocurrency futures in late 2022 The largest — the CSOP Bitcoin Futures ETF — has seen its assets under management grow by nearly $120 million (roughly Rs. 999 crore) since September.

Hong Kong-based Value Partners has also said it is looking for a startup location. Bitcoin ETF. He has not disclosed whether he has submitted the application.

© Thomson Reuters 2024

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