Hong Kong set to approve its first spot bitcoin ETFs in April, sources say

By Summer time Zhen and Jason Xue

HONG KONG (Reuters) – Spot bitcoin exchange-traded funds could possibly be launched in Hong Kong this month with the primary approvals prone to be introduced subsequent week, two folks accustomed to the matter stated.

That timeline would make Hong Kong Asia’s first metropolis to supply the favored ETFs and is far quicker than business expectations of launches someday this yr.

Regulators have sped up the approval course of, in response to one of many folks.

Having misplaced a lot of its shine as a worldwide monetary hub resulting from restrictions throughout the pandemic, China’s faltering economic system and Sino-U.S. tensions, Hong Kong authorities have been eager to do what they will to enhance town’s attractiveness for monetary buying and selling.

“The importance of Hong Kong ETFs is far-reaching because it might herald recent world funding in addition to pushing crypto adoption to a brand new top,” stated Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto wealth supervisor.

The U.S. launched the primary U.S.-listed exchange-traded funds (ETFs) to trace spot bitcoin in January, drawing roughly $12 billion in internet inflows, knowledge from BitMEX Analysis reveals.

has gained greater than 60% this yr and hit an all-time excessive of $73,803 in March. It was buying and selling at round $69,000 on Wednesday.

A minimum of 4 mainland Chinese language and Hong Kong asset managers have submitted functions to launch the ETFs, the 2 sources stated.

The Hong Kong items of China Asset Administration, Harvest Fund Administration and Bosera Asset Administration are among the many candidates, in response to the 2 folks and a 3rd supply.

The sources weren’t authorised to talk to media and declined to be recognized.

Hong Kong’s Securities and Futures Fee (SFC) and the three Chinese language corporations declined to remark.

China Asset Administration and Harvest Fund Administration’s Hong Kong items obtained approval this month to handle portfolios that make investments greater than 10% in digital belongings, in response to the SFC’s web site.

Their guardian corporations are among the many largest mutual fund companies in China, with every managing over 1 trillion yuan ($138 billion) in belongings.

Though cryptocurrency buying and selling is banned in mainland China, offshore Chinese language monetary establishments have been eager to take part in crypto asset growth in Hong Kong.

Hong Kong authorised its first ETFs for cryptocurrency futures in late 2022. The biggest one – the CSOP ETF – has seen its belongings underneath administration swell seven instances since September to round $120 million.

Hong Kong-based Worth Companions has additionally stated it’s exploring launching a spot bitcoin ETF. It has not disclosed if it has submitted an utility.

($1 = 7.2305 yuan)