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Home » Hong Kong regulatory authority expedites approval process for Bitcoin spot ETFs
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Hong Kong regulatory authority expedites approval process for Bitcoin spot ETFs

2024-04-10No Comments2 Mins Read
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The Securities Regulatory Commission (SFC) in Hong Kong has reportedly fast-tracked the approval process for four spot Bitcoin (BTC) exchange-traded funds (ETFs). According to Tencent News, the first batch of spot Bitcoin ETFs is expected to receive approval in Hong Kong by April 15. Sources close to the SFC have revealed that the regulator initially planned 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 advancing this cryptocurrency investment. Once the SFC approves the initial set of spot Bitcoin ETFs, the Hong Kong Stock Exchange will require approximately two weeks to finalize listing procedures and related arrangements. The forthcoming endorsement of spot Bitcoin ETFs in Hong Kong holds significant potential for institutional and individual investors. As retail investors gain access to Bitcoin investments through ETF purchases, the investment landscape is on the verge of a major shift. During a keynote speech at the HSBC Global Investment Summit, Julia Leung, CEO of the SFC, emphasized the responsible use of innovative technologies such as distributed ledger technology and tokenization to enhance efficiency in the financial industry while safeguarding investor protection. Leung also highlighted efforts to align corporate reporting standards with sustainability disclosure standards and promote informed investment decisions in line with sustainability goals. It is worth noting that the anticipated approval of spot Bitcoin ETFs in Hong Kong would 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 trio accounting for over 88% of the total. Traditional institutional investors are showing increased interest in cryptocurrencies as stock market performance becomes lackluster. In a bid to boost local adoption of Web3 technology, ZA Bank in Hong Kong recently announced plans to offer specialized banking services for stablecoin issuers and secure custody for fiat reserves to collateralize digital assets.

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