Approval of Bitcoin spot ETFs in Hong Kong expedited by regulator

The Securities Regulatory Commission of Hong Kong (SFC) is said to have fast-tracked the approval process for four exchange-traded funds (ETFs) that track the spot price of Bitcoin (BTC). Reports from Tencent News suggest that the first set of spot Bitcoin ETFs could receive approval in the region by April 15. The Hong Kong regulator initially intended to approve only four spot Bitcoin ETFs in the first batch. Recent announcements indicate that Boshi Fund and Value Partners Financial are likely to join pending regulatory approval, while Harvest International and China Asset Management have already made progress in leading this cryptocurrency investment advancement. Once the Securities and Futures Commission of Hong Kong approves the initial batch of spot Bitcoin ETFs, the Hong Kong Stock Exchange will need approximately two weeks to finalize listing procedures and related arrangements. The forthcoming endorsement of spot Bitcoin ETFs in Hong Kong opens up numerous opportunities for institutional and individual investors. Retail investors will have access to Bitcoin investments through ETF purchases, potentially causing a significant shift in the investment landscape. During a keynote speech at the HSBC Global Investment Summit, Julia Leung, CEO of the SFC, stressed the importance of responsible use of innovative technologies like distributed ledger technology and tokenization to enhance efficiency in the financial industry, while also ensuring investor protection. Leung also emphasized efforts to align corporate reporting standards with sustainability disclosure standards and promote informed investment decisions aligned with sustainability goals. The expected approval of spot Bitcoin ETFs in Hong Kong will come approximately three months after the Securities and Exchange Commission approved the first batch in the United States. Currently, the top 10 spot Bitcoin ETFs manage around $57 billion in assets, with the leading three accounting for over 88% of the total. Traditional institutional investors are showing increased interest in cryptocurrency as the performance of the stock market becomes lackluster. In a bid to boost local adoption of Web3 technologies, Hong Kong’s ZA Bank recently announced plans to offer specialized banking services for stablecoin issuers, providing secure custody for fiat reserves to collateralize digital assets. This announcement was made on April 5.