Written by Summer time Jen and Jason Xue
HONG KONG (Reuters) – A Spot Bitcoin exchange-traded fund might be launched in Hong Kong this month, with preliminary approval more likely to be introduced subsequent week, two individuals accustomed to the matter mentioned. .
The schedule would make Hong Kong the primary metropolis in Asia to supply the favored ETF, a lot sooner than business expectations for it to be launched later this yr.
Regulators have expedited the approval course of, one of many individuals mentioned.
Hong Kong authorities, which have misplaced a lot of their luster as a worldwide monetary hub on account of restrictions through the pandemic, a weak Chinese language financial system and tensions between the US and China, are eager to do every part they will to enhance the town's attractiveness for monetary transactions. .
“The significance of the Hong Kong ETF is far-reaching because it not solely attracts new world funding but additionally has the potential to push crypto adoption to new heights,” mentioned a Hong Kong-based crypto asset administration firm. mentioned Adrian Wang, CEO of Metalfa.
The US launched the primary US exchange-traded fund (ETF) monitoring spot Bitcoin in January, attracting about $12 billion in web inflows, in accordance with information from BitMEX Analysis.
It has risen greater than 60% this yr, hitting a report excessive of $73,803 in March. It was buying and selling at about $69,000 on Wednesday.
A minimum of 4 asset administration firms from mainland China and Hong Kong have submitted purposes to launch an ETF, two individuals accustomed to the matter mentioned.
The Hong Kong models of China Asset Administration, Harvest Fund Administration and Vocera Asset Administration are additionally among the many candidates, the 2 individuals and a 3rd individual mentioned.
The sources weren’t approved to talk to the media and declined to be recognized.
The Hong Kong Securities and Futures Fee (SFC) and the three Chinese language firms declined to remark.
China Asset Administration and Harvest Fund Administration's Hong Kong models acquired approval this month to handle portfolios that make investments greater than 10% in digital belongings, in accordance with the SFC's web site.
Each firms' dad or mum firms are amongst China's largest funding belief firms, with every managing greater than 1 trillion yuan ($138 billion) in belongings.
Though cryptocurrency buying and selling is prohibited in mainland China, Chinese language offshore monetary establishments are eager to take part in crypto asset improvement in Hong Kong.
Hong Kong has authorized its first crypto futures ETF on the finish of 2022. Property below administration of the biggest ETF, the CSOP ETF, have elevated sevenfold since September to about $120 million.
Hong Kong-based Worth Companions additionally mentioned it’s contemplating launching a spot Bitcoin ETF. It didn’t say whether or not an utility had been submitted.
(1 greenback = 7.2305 yuan)
