Hong Kong Authorities Ready to Approve Bitcoin Spot ETFs
Date: 2023-12-23 Author: Dima Zakharov Categories: IN WORLD
Hong Kong's New Stance on Bitcoin ETFs
In a joint circular, the SFC and the Hong Kong Monetary Authority revealed their willingness to accept applications for spot Bitcoin products, expanding beyond the existing futures-based virtual asset funds. This marks a notable shift in their approach to cryptocurrency investments.
Key Requirements for Crypto Funds
The regulatory document outlines specific requirements for crypto funds looking to operate in Hong Kong. These funds must exclusively invest in tokens traded on regulated platforms within Hong Kong, conduct all transactions through licensed market intermediaries, and use custodians approved by regulators. Additionally, the redemption of crypto ETFs can occur in both fiat and non-fiat forms.
Preliminary Consultations Required
To launch funds with at least a 10% cryptocurrency component, preliminary consultations with the SFC will be necessary. This move aims to strike a balance between promoting innovation and ensuring investor protection within the crypto market.
Implications for the Bitcoin Price
This development comes as the U.S. Securities and Exchange Commission (SEC) reviews over a dozen applications for spot Bitcoin ETFs. Major players like BlackRock, VanEck, Invesco, Fidelity Investments, and WisdomTree are among the contenders. Market experts anticipate that these products may receive mass approval around January 8-10.
Global Impact of Spot Bitcoin ETFs
The approval of spot Bitcoin ETFs in Hong Kong may exert influence on the SEC's decision, as former BitMEX CEO Arthur Hayes suggests. It could further fuel the ongoing economic rivalry between the United States and China, potentially shaping the future of cryptocurrency markets worldwide.
