According to Reuters, Hong Kong will approve spot exchange-traded funds (ETFs) for Bitcoin (BTC). This can happen at very short notice and will be unique in Asia. The approval of Bitcoin ETFs in the US then led to a massive increase in the price of Bitcoin.
Bitcoin ETFs in Hong Kong
Two sources told Reuters that Bitcoin ETFs could be approved in Hong Kong as early as this month.
This makes Hong Kong the first city in Asia to offer Bitcoin ETFs. This is interesting because cryptocurrency trading is completely banned in mainland China. However, Chinese companies participate in crypto trading in a roundabout way, for example through Hong Kong, which has some autonomy.
The ETFs were not expected to be approved until later this year. However, regulators have accelerated the move so that ETFs could be approved as early as this month
Hong Kong is no longer quite the global financial center it once was. This is due to, among other things, strict Covid restrictions in China, a stagnating Chinese economy and increasing tensions between the US and China.
Therefore, this seems to be a step in the right direction for Hong Kong. For example, Adrian Wang, director of a crypto asset manager in Hong Kong, says the following:
“The importance of ETFs in Hong Kong is far-reaching as they can attract new global investments and drive crypto adoption to new levels.”
According to the sources, at least four companies have filed applications to launch ETFs.
BTC ETFs hit all-time highs
Bitcoin ETFs have been in the news a lot lately. For example, the US approved ETFs earlier this year. This caused the price of Bitcoin to explode, reaching a new all-time high of nearly $74,000 last month. Since then, more and more countries are looking to the USA to allow ETFs.
There was hope that ETFs would become even more important and, for example, Ethereum (ETH) ETFs would also be approved in the USA. However, the question remains whether this will still happen.
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