- Hong Kong is considering launching spot Bitcoin and Ethereum ETFs, amid strong interest from 10 financial institutions.
- Additionally, preparations for an Ethereum spot ETF are underway in Hong Kong and plan to launch them before the US.
See the grand success of the spot Bitcoin ETF launch in the United States, other global crypto jurisdictions are mulling a similar move. Recent reports suggest that Hong Kong is mulling to launch a series of spot Bitcoin and spot Ethereum ETFs in the market. Interestingly, a total of 10 financial institutions have shown interest in launching these investment products in the country.
With the ongoing speculation surrounding Bitcoin spot ETFs, Hong Kong opened applications for such ETFs at the end of December last year. However, as of now, there have been no related products available in the market.
Some industry insiders have highlighted that the absence of Asian Bitcoin spot ETF products currently exposes Asian investors to the risk of relying solely on U.S. capital. They advocate for the prompt launch of Hong Kong spot ETFs, derivatives, and other trading products to address this issue. As reported by Crypto News Flash, the demand for spot Bitcoin ETFs in the US is so huge that some analysts believe them to soon rival the S&P 500.
Bitcoin Futures ETF Demand on the Rise
Amidst the strength of Bitcoin, two Bitcoin futures ETFs in Hong Kong have achieved new highs. The Southern Bitcoin ETF (3066) surged to 27.5 yuan last week, marking a 2.5-fold increase from its listing price, while the Samsung Bitcoin ETF (3135) reached a peak of 26.8 yuan, surpassing its listing price by 2.2 times. Meanwhile, preparations for an Ethereum spot ETF are underway.
The market is closely monitoring the progress of Hong Kong’s Bitcoin spot ETF products. Weng Xiaoqi, CEO of a locally licensed platform HashKey Exchange, attributed the recent rapid growth in the virtual asset trading market to the influence of the US Bitcoin spot market. However, he noted that these products are predominantly driven by European and American investment institutions at present. Xiaoqi stated:
“The delayed launch of spot ETFs in half a year also means that It will be half a year later for U.S. capital to enter the market. At that time, it will face higher purchase costs and entry points, and will have to bear the risk of being locked in by U.S. capital.”
Amid these developments, he also disclosed that Hashkey is collaborating with its partners to expedite the listing of trading products, including Hong Kong spot ETFs and derivatives.
Overtaking the US for Spot Ethereum ETFs
According to sources familiar with the matter, plans are underway to expedite the launch of spot ETFs, derivatives, and various other trading products in Hong Kong. Additionally, it has been disclosed that preparations for the introduction of an Ethereum spot ETF in Hong Kong are currently underway. If successfully launched ahead of similar products in the United States, this move is expected to bolster Hong Kong’s standing in the global cryptocurrency market.
However, according to insights shared by Forbes journalist Eleanor Terrett, optimism surrounding the SEC’s endorsement of the ETH spot ETF before May 23 is diminishing. Notably, opposition from anti-cryptocurrency figures like Senator Warren is mounting against the approval of the ETH spot ETF. Additionally, Terrett highlighted that SEC staff have not shown substantial support for the proposal. As reported by Crypto News Flash, the SEC has been just delaying the spot Ethereum ETF applications even from giants like BlackRock and Fidelity.
SCOOP: Optimism about the @SECGov approving the $ETH spot ETFs by May 23rd is waning.
Based on my conversations with people familiar, meetings in recent weeks have been very much one sided, with issuers and custodians trying to rally SEC staff to get the process rolling, but…
— Eleanor Terrett (@EleanorTerrett) March 10, 2024
