Hong Kong’s regulatory authority expedites approval process for Bitcoin spot ETFs

The Securities Regulatory Commission of Hong Kong (SFC) is said to have expedited the approval process for four Bitcoin (BTC) exchange-traded funds (ETFs). According to Tencent News, the first batch of these ETFs is expected to be approved by April 15. The report, citing sources close to the Hong Kong Securities and Futures Commission, reveals that initially, the regulator 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 leading this cryptocurrency investment advancement. Once the Hong Kong Securities and Futures Commission approves the initial set of spot Bitcoin ETFs, the Hong Kong Stock Exchange will take approximately two weeks to finalize listing procedures and related arrangements. The upcoming endorsement of spot Bitcoin ETFs in Hong Kong presents various opportunities for institutional and individual investors, as retail investors will be able to invest in Bitcoin through ETF purchases, potentially leading to a significant shift in the investment landscape. Julia Leung, the 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 safeguarding investor protection during a keynote speech at the HSBC Global Investment Summit. Leung also highlighted efforts to align corporate reporting standards with sustainability disclosure standards and promote informed investment decisions that align with sustainability goals. 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. Presently, 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 greater interest in cryptocurrency as stock market performance becomes lackluster. In a move to boost local adoption of Web3, ZA Bank in Hong Kong recently announced plans to offer specialized banking services for stablecoin issuers, including secure custody for fiat reserves to collateralize digital assets.