Hong Kong gives green light to approve Bitcoin ETFs next week

Hong Kong’s cryptocurrency sector regulators have given a thumbs up for approving spot Bitcoin exchange-traded funds (ETFs). Regulators will likely approve the first set of applications for Bitcoin ETFs next week, according to information published by Reuters.

Two people familiar with the matter confirmed the regulars’ move toward approval as early as next week, according to the publication. With this, it will be possible for the products to begin negotiations in April.

Given this development, Hong Kong could become a pioneer in Asia, being the first city to offer Bitcoin ETF products in cash. According to Reuters, the process for approving ETFs was accelerated by Hong Kong regulators.

It is worth remembering that in March, Venture Smart Financial Holdings Ltd., a financial services company in Hong Kong, recently took an important step towards a Bitcoin spot exchange-traded fund (ETF). At the time, VSFG submitted its application for a Bitcoin ETF, highlighting that it intended to launch the product in May.

Chinese Funds Target Bitcoin ETFs in Hong Kong

Chinese mutual fund giants are eyeing Bitcoin ETFs (exchange-traded funds). This strategy, which seeks regulatory approval to take off in the second quarter, could redefine the way companies in the region view investments in cryptocurrencies.

After years of caution due to China’s restrictions on Bitcoin mining and cryptocurrencies in 2021, this change of direction signals renewed interest and untapped potential in digital assets. The subsidiaries of Jiashi Fund and Southern Fund are at the forefront of this foray, having already submitted their regulatory applications for the creation of Bitcoin ETFs.

Jiashi Fund is eager to launch a spot Bitcoin ETF, while Huaxia Fund subsidiary has joined forces with HashKey, a Bitcoin ETF custodian. These actions point to a deliberate strategy of utilizing Hong Kong’s operating units to delve deeper into the world of digital assets, taking advantage of the city-state’s favorable regulatory framework.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.