Hong Kong authorities are taking active steps to launch Bitcoin exchange-traded funds (ETFs) in April. The initiative follows the US Securities and Exchange Commission's (SEC) decision to approve spot Bitcoin ETFs in January 2024.
In Hong Kong, four asset management companies – Harvest International, China Asset Management, Boshi Fund and Value Partners Financial – have so far filed applications with the Hong Kong Securities and Financial Commission (SFC) to launch spot Bitcoin ETFs.
It's worth noting that while Boshi Fund and Value Partners Financial are waiting to be listed under the regulatory criteria, Harvest International and China Asset Management have already made progress on the matter, CoinGape reports.
According to Hong Kong's latest SFC data, state-owned funds Harvest International and China Asset Management are listed in the first batch of digital asset management companies. This indicates that Hong Kong is ready to integrate cryptocurrencies into the traditional financial sector.
Although the launch of spot Bitcoin ETFs in Hong Kong involves strict requirements and regulations, including cooperation with at least 20 organizations such as Bitcoin custodians and market makers, it is expected to be completed within 10 days of regulatory approval.
The launch of spot Bitcoin ETFs will enable Hong Kong retail investors to invest in Bitcoin through ETF subscriptions.
At the same time, it will allow institutional investors to enter the cryptocurrency market, providing them with opportunities to diversify their investment portfolios.
Many analysts expect Hong Kong to replicate the success of the US, albeit on a smaller scale.
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