The successful U.S. launch of spot bitcoin ETFs is expected to help move Hong Kong regulators closer to authorizing similar cryptocurrency funds to operate in the city.
Crypto spot ETFs allow investors to gain exposure to virtual assets without directly purchasing any crypto tokens.
These funds โgive more legitimacy to the crypto industry and also open up more opportunities for collaboration with mainstream finance,โ said RJ Ke, a researcher at Taiko, an ethereum expansion startup. "Hong Kong likely to accelerate bitcoin ETF filings in coming months."
US regulator SEC authorizes bitcoin spot ETFs in cryptocurrency breakthrough
US regulator SEC authorizes bitcoin spot ETFs in cryptocurrency breakthrough
Hong Kong needs to launch spot virtual asset ETFs as soon as possible to "ensure the city remains competitive in the global cryptocurrency market and strengthen its position as a global financial center," said Mao Shixing, also known as "Discus Fish," who is the co-founder and CEO of digital asset custody solutions provider Cobo.
Mao said the U.S. approvals could affect other jurisdictions because "the SEC is one of the most influential and reputable financial regulators in the world," adding that the agency's initiatives "often serve as important references for financial regulators in other countries." countries and regions".
"However, each country and region has its own independent stance and regulatory objectives," he said.
Hong Kong to boost retail access to spot cryptocurrency exchange-traded funds
Hong Kong to boost retail access to spot cryptocurrency exchange-traded funds
Donald Day, chief operating officer of digital asset platform VDX, echoing the Cobo boss' view, said the SEC's decision would cause his peers to "seriously consider whether similar ETFs would be permissible and desirable."
Day noted that the SFC's statement in December about being prepared to authorize such funds "in principle opened a path for issuers to launch spot crypto ETFs in Hong Kong."
However, mainland China is unlikely to follow suit.
Beijing to draft national Web3 development plan amid strict cryptocurrency ban
Beijing to draft national Web3 development plan amid strict cryptocurrency ban
The Chinese government banned banks from handling bitcoin in 2013 and forced cryptocurrency exchanges to move abroad in 2017. In 2021, the country's regulators reiterated the state's ban on all financial institutions from engaging in cryptocurrency-related activities.
China's state media recently emphasized the risks involved with spot cryptocurrency ETFs.
US approval of spot bitcoin ETFs "would make the cryptocurrency market even more frenetic, providing fertile ground for illegal transactions such as money laundering," according to a report in International Financial News, a People's Daily newspaper. , which quotes Shanghai Jiao. Li Nan, assistant professor at Tong University.
