Hong Kong Sees 10 Financial Institutions Apply For Spot Bitcoin and Ethereum ETFs

Hong Kong’s financial sector is experiencing significant changes. Ten financial institutions are preparing to launch Bitcoin and Ethereum spot ETFs. People are excited because they think that if Hong Kong launches Ethereum products before the US, it could become a leader in the crypto industry instead of just following suit.

It was a big deal when the first Bitcoin spot ETFs were introduced in the US two months ago. The funds received over US$6 billion in net inflows, which brought the total assets to over US$50 billion. Even though there has been a lot of talk about Bitcoin spot ETFs, and Hong Kong opened its doors to applications last December, none of these products have been on the market. 

Some people in the industry are worried about the lack of Asian Bitcoin spot ETFs, saying that it puts Asian investors at a disadvantage compared to Americans. It also exposes Asian investors to risks associated with delayed market entry by U.S. capital. So, many people are looking forward to Hong Kong speeding up the start of spot ETFs, swaps, and other trade products.

The COO of HashKey Group, Weng Xiaoqi, talked about how the growth of the U.S. Bitcoin spot market has led to the current bull run that is starting. HashKey is working hard with its partners to speed up the launch of Hong Kong spot ETFs and derivatives.

The China Securities Regulatory Commission decides how many Bitcoin spot ETFs will be listed for the first time in Hong Kong. There will likely be fewer Bitcoin spot ETFs in Hong Kong than in the U.S., where eleven were approved. This is because the markets there are smaller. It is thought that reducing the number of ETF listings will help Hong Kong’s market grow by increasing liquidity.

Harvest Fund has already taken a step forward by applying for Bitcoin spot ETFs with the Securities and Exchange Commission in the middle of January.