Hong Kong is on track to approve the first spot bitcoin exchange-traded funds (ETFs) in Asia this month, with the initial approvals expected to be announced next week, according to sources familiar with the situation as reported by Reuters and Chinese news outlet qq.
The Hong Kong Securities and Futures Commission (SFC) has expedited the approval process, positioning Hong Kong as a leader in Asia’s bitcoin ETF market. This move comes ahead of anticipated launches later in the year.
Several Chinese financial institutions, including the Hong Kong branches of Harvest Fund and China Southern Fund, have recently submitted applications for bitcoin ETFs. Spot bitcoin ETFs provide direct exposure to bitcoin rather than using derivatives.
Sources indicate that the SFC will reveal the first batch of approved spot bitcoin ETFs on April 15. Following approval, these funds can then seek listing on the Hong Kong Stock Exchange, a process expected to take about 10 days.
This swift timeline showcases Hong Kong’s proactive efforts to enhance its status as a global financial center. It also builds upon the city’s favorable stance towards bitcoin, such as granting retail trading licenses to crypto exchanges like Hashkey last year.
This news follows the successful launch of spot bitcoin ETFs in the United States earlier this year, which attracted significant inflows of over $12 billion. As the first Asian jurisdiction to approve such ETFs, Hong Kong is setting the stage for potential launches in other markets.
Demand for accessible bitcoin investment products has been growing rapidly among both institutional and retail investors. By leveraging its regulatory framework to meet this demand, Hong Kong solidifies its position as an emerging hub for bitcoin in Asia.
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