Taking over from the United States, when will the Hong Kong BTC spot ETF be listed?

php editor Yuzai has recently noticed that the Hong Kong Bitcoin Spot Exchange Exchange Traded Fund (ETF), which has taken over from the United States, has attracted much attention, which has attracted great attention from the market. Many investors are eagerly anticipating the launch of this product, but the specific launch time has not yet been determined. As the Bitcoin market continues to develop, the listing of this ETF will provide investors with more choices and opportunities, let's wait and see!

The capital scale of Hong Kong virtual asset spot ETF is expected to reach tens of billions of dollars.

Written by: IQ Tax Bureau

SEC’s approval of the Bitcoin Spot ETF marks that the cryptocurrency industry has entered a new and important stage. As these U.S. stock market traders join the market, the appeal of Bitcoin ETFs continues to grow, attracting large inflows. According to data from BitMEX Research, net inflows into these 11 Bitcoin ETFs exceeded $2.27 billion last week alone (February 12 to February 16).

It should be noted that these ETFs are attracting more and more funds, and at the same time they are constantly injecting new funds into the Bitcoin market. Since the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on January 10, EST, the price of Bitcoin has risen by more than 10%. This shows the market’s positive attitude towards these new investment vehicles and may bring more positive effects to the Bitcoin market.

On February 20, total net inflows into Bitcoin spot ETFs reached $137 million. GBTC had a single-day net outflow of $137 million, and other ETFs except Grayscale had a total net inflow of $274 million. Among them, BlackRock ETF IBIT had the largest single-day net inflow, reaching $154 million, accounting for 56% of the total single-day inflow. Trading volume for the Bitcoin spot ETF (excluding GBTC) hit $2 billion, a new high since its U.S. debut last month.

As of the close of trading on February 20, Bitcoin ETFs had more than $37 billion in total assets under management. According to the ranking of assets under management, the top three Bitcoin ETFs are: GBTC, with assets under management reaching US$23.567 billion; IBIT, with assets under management reaching US$5.68 billion; FBTC, with assets under management reaching US$4.25 billion.

Now, Hong Kong has taken over the baton. Donald Tai, chief operating officer of Hong Kong-based virtual asset exchange VDX, believes the U.S. Securities and Exchange Commission’s (SEC) decision will prompt other peers to seriously consider whether similar exchange-traded funds (ETFs) are feasible and desirable. He noted that the Securities and Futures Commission issued a statement in December last year on its readiness to authorize such funds, essentially opening the way for issuers to launch spot cryptocurrency ETFs in Hong Kong.

We are getting closer and closer to Asia’s first virtual asset spot ETF being listed in Hong Kong.

Hong Kong is expected to list a BTC spot ETF in the first quarter

On the same day that the US SEC approved the first Bitcoin spot ETF, Wu Jiezhuang, a member of the National Committee of the Chinese People’s Political Consultative Conference and a member of the Hong Kong Legislative Council, issued a document stating that Hong Kong will also Dare to be a "leader" in the field of virtual assets. On the one hand, the Hong Kong Securities and Futures Commission has previously stated that it is ready to accept applications for spot Bitcoin ETFs. The SAR government should promote the implementation of spot ETFs as soon as possible; on the other hand, it must strengthen popular education on virtual assets.

The current Hong Kong Bitcoin Spot ETF is in the actual advancement stage.

Chen Peiquan, executive director of Victory Securities, a licensed virtual asset brokerage in Hong Kong, revealed that the United States allows spot ETFs to be listed, which is regarded by the encryption industry as the key to achieving a "connection" between virtual currencies and actual exchanges, which will inevitably lead to more investors participating. Go in. Many fund companies in Hong Kong are already intensively making preparations. It is expected that as soon as the first quarter of this year, many fund companies will express their willingness to apply, or even successfully apply.

In addition, Yibo Financial and Xinhuo Asset Management have publicly stated that they are preparing for ETF-related applications. Serra Wei, CEO of digital asset custody company Aegis Custody, revealed that the company is negotiating with four asset management companies to list spot encryption products in Hong Kong.

Currently, there are two BTC futures ETFs and one ETH futures ETF listed in Hong Kong, issued by Samsung Assets and CSOP. The former has publicly stated that it "does not rule out the possibility of exploring the launch of spot ETFs," while the latter revealed that it will observe market demand before considering it.

As Hong Kong gradually establishes and improves the encryption regulatory system and approves virtual asset futures ETFs, it already has the listing environment and conditions for Bitcoin spot ETFs. Luo Boren, head of securities product development at the Hong Kong Exchange, said that the Hong Kong Exchange is ready to seize the opportunities brought by thematic investment and will work closely with issuers and various stakeholders to smoothly introduce this new product into the Hong Kong ETF market.

Referring to the approval process of traditional ETFs, as long as the Bitcoin spot ETF application institution meets regulatory requirements in terms of redemption mechanism, custody method, risk control system, etc., it will be witnessed in Hong Kong in a matter of weeks or months at the earliest. Spot virtual asset ETF was born.

Opening a new era of virtual asset investment

Chen Peiquan pointed out that many investors have not dared to invest in virtual currencies. The main reasons include not adapting to new investment methods or fearing that the investment platform will explode. Virtual asset spot ETFs can solve these two major pain points: on the one hand, investors can participate in investments through familiar channels; on the other hand, the China Securities Regulatory Commission requires institutions that issue spot ETFs to use Hong Kong licensed platforms, and the platforms themselves also purchase insurance. Not only are investment risks protected, it will also benefit the development of Hong Kong’s virtual asset platforms and securities firms.

Although Hong Kong’s launch of BTC spot ETFs is slightly behind the United States, Hong Kong’s regulatory circular does not limit applications to BTC as a single subject. Therefore, Hong Kong is likely to expand the category of virtual asset ETFs in the future, including ETH. ETFs such as mainstream virtual assets may be the first to be listed in Hong Kong.

For market investors, the listing of virtual asset spot ETFs will significantly lower the threshold for participation, and in a protected environment, they can grasp the growth dividends of virtual assets without having to personally take charge of the assets on the chain.

For institutions such as asset management companies, securities firms, and funds, they can also seek business growth from the market growth of virtual asset ETFs and capture opportunities for differentiated customer acquisition and overtaking in corners through new business lines. Institutions that keenly grasp the development period of virtual assets from niche to mainstream and are stuck in the track can seize more traffic dividends brought by new assets.

For the virtual asset market, spot ETFs will continue to draw funds from traditional financial markets and are expected to usher in a new growth cycle.

Currently, the asset management scale of three virtual asset futures ETFs in Hong Kong is approximately HK$384 million, showing that virtual assets already have a certain market in Hong Kong. With improved supervision, rich products, and participating institutions and investors With the increase, Hong Kong virtual asset spot ETF is expected to become the main channel for Asian capital inflows.

In view of the fact that the AUM of many Hong Kong-funded and Chinese-funded Hong Kong subsidiaries financial institutions has reached hundreds of billions of dollars, 1% of the virtual asset allocation will be for the virtual asset market bring huge increments. It is expected that the capital scale of Hong Kong virtual asset spot ETFs is expected to reach tens of billions of dollars in the next few years. Hong Kong, with its open policies, will lead a new era of virtual asset investment.

The above is the detailed content of Taking over from the United States, when will the Hong Kong BTC spot ETF be listed?. For more information, please follow other related articles on the PHP Chinese website!