Hong Kong is poised to greenlight its inaugural spot bitcoin exchange-traded funds (ETFs) this April, according to sources familiar with the matter.
The launch of these ETFs in Hong Kong, expected to be announced next week, would mark a significant development, potentially making the city the first in Asia to offer such products. This timeline is notably faster than industry predictions, which had anticipated launches later in the year.
One of the individuals involved noted that regulators have expedited the approval process.
Amidst challenges including pandemic-related restrictions, China’s economic slowdown, and tensions between China and the United States, Hong Kong has been striving to enhance its appeal as a global financial center.
Adrian Wang, CEO of Metalpha, a crypto wealth manager based in Hong Kong, emphasized the potential impact of Hong Kong ETFs, suggesting they could attract fresh global investment and propel crypto adoption to new levels.
In January, the United States debuted the first U.S.-listed exchange-traded funds (ETFs) tracking spot bitcoin, attracting approximately $12 billion in net inflows, according to data from BitMEX Research.
Bitcoin has surged over 60% this year, reaching an all-time high of $73,803 in March, before stabilizing around $69,000 as of Wednesday.
At least four mainland Chinese and Hong Kong asset managers have submitted applications to launch these ETFs, according to the sources.
Among the applicants are the Hong Kong units of China Asset Management, Harvest Fund Management, and Bosera Asset Management, as reported by the sources. However, they declined to be identified, citing lack of authorization to speak to the media.
The Securities and Futures Commission (SFC) of Hong Kong, as well as the three Chinese companies, opted not to provide comments on the matter.
Notably, the Hong Kong units of China Asset Management and Harvest Fund Management recently received approval to manage portfolios investing more than 10% in virtual assets, as per information available on the SFC’s website.
