Hong
Kong
regulators
on
Monday
approved
the
launch
of
spot
bitcoin
and
ether
exchange-traded
funds
(ETFs),
according
to
local
reports.
It’s
the
latest
signal
of
the
increasing
institutionalization
of
the
world’s
leading
crypto
assets,
and
perhaps
a
harbinger
of
things
to
come
in
mainland
China,
which
banned
virtually
all
crypto
activity
in
2021.
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ChinaAMC,
Harvest
Global
and
Bosera
International
are
among
the
asset
managers
granted
licenses
to
launch
these
spot
market
products
by
the
Hong
Kong’s
Securities
and
Futures
Commission
(SFC),
though
more
may
follow.
In
recent
months,
Hong
Kong
regulators
have
signaled
their
intent
to
open
the
former
citystate
into
a
crypto
hub.
Notably,
Hong
Kong
is
positioning
itself
as
one
of
the
first
regions
to
approve
spot
ether
ETFs.
Canada,
the
first
country
to
allow
the
launch
of
bitcoin
ETFs,
approved
ETH
ETFs
a
few
months
later.
In
the
U.S.,
where
the
Securities
and
Exchange
Commission’s
hand
was
essentially
forced
to
approve
spot
bitcoin
ETFs
is
currently
dragging
its
feet
on
ether-based
products.
Europe,
Singapore,
Australia
and
Dubai
also
have
approved
bitcoin
ETFs
available
in
their
respective
regions.
The
U.K.
will
soon
allow
crypto-traded
notes
to
be
traded
on
the
London
Stock
Exchange
starting
in
May,
while
Australia
is
expected
to
approve
them
in
June
this
year.
See
also:
The
Bitcoin
ETF
Approval:
Full
Coverage
The
Hong
Kong
news
is
positive
especially
considering
the
city’s
role
as
a
regional
financial
hub,
perhaps
opening
the
door
for
nearby
neighbors
like
Japan
and
Singapore
to
also
open
the
floodgates
to
spot
bitcoin
investing.
However,
unlike
the
unlock
that
happened
in
the
U.S.,
which
is
one
of
the
main
drivers
of
the
recent
bitcoin
rally
that
has
pushed
the
asset
to
ever
newer
all-time
highs,
there
are
reasons
to
doubt
billions
in
new
capital
will
flood
into
the
market.
Bitcoin
ETFs
in
the
U.S.
this
year
have
been
some
of
the
fastest
growing
financial
products
ever
—
already
accounting
for
billions
in
assets
under
management.
But
as
financial
markets
guru
Noelle
Acheson
has
pointed
out,
there
is
a
gulf
between
the
relative
market
size
of
the
U.S.
and
Hong
Kong.
“A
handful
of
$BTC
and
$ETH
futures
ETFs
listed
in
Hong
Kong
in
December
2022,
and
today,
more
than
a
year
later,
have
a
combined
AUM
of
just
under
$170
million,”
Acheson
tweeted.
“For
contrast,
$BITO
–
the
largest
U.S.-listed
BTC
futures
ETF
–
has
an
AUM
of
over
$2.8
billion.”
