Hong Kong Authorities Open Doors For Spot Bitcoin-ETFs

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority have announced that they are ready to consider applications to launch spot bitcoin-ETFs. This means that in the future, Hong Kong investors will be able to buy and sell bitcoin through exchange-traded funds that track its price.

The new SFC rules stipulate that crypto funds must meet the following requirements:

  • Invest only in tokens traded in Hong Kong on regulated platforms.
  • Make all transactions through licensed market intermediaries.
  • Use regulator-approved custodians exclusively.
  • Crypto-ETFs can be redeemed in both cash and in-kind.

Unlike the US, where the Securities and Exchange Commission (SEC) has yet to approve any spot bitcoin-ETFs, Hong Kong authorities have taken this step towards the cryptocurrency industry. This could boost the digital asset market in the region.

In the US, there are more than a dozen applications pending before the SEC to launch spot bitcoin ETFs. BlackRock, VanEck, Invesco, Fidelity Investments and WisdomTree are among the applicants.

Industry experts expect that the SEC may approve the first spot bitcoin ETFs in the U.S. as early as January 2024. Also, Analysts have rated bitcoin's prospects at $160,000 after ETF approval.

Author: Denis Tabyrtsa

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