Asia's first Bitcoin spot ETF is coming? News: Many financial companies in Hong Kong submitted applications

Currently, there are three virtual asset futures ETFs listed in Hong Kong. In December last year, the Hong Kong Securities and Futures Commission stated that it was ready to accept authorization applications for virtual asset spot ETFs and other related funds. It is reported that Harvest International recently submitted a Bitcoin spot ETF application to the Hong Kong Securities Regulatory Commission, becoming the first institution in Hong Kong to apply for such a product. This move has attracted some attention in the market, because the launch of virtual asset ETFs is expected to provide investors with more choices, and also reflects the gradual acceptance and development of virtual assets in the Hong Kong financial market. The attitude of the Hong Kong Securities Regulatory Commission also shows that they are ready for the supervision of this emerging field, for future virtual assets

Many institutions are seeking to issue spot ETFs

According to China Fund News , in fact, many Hong Kong institutions are gearing up. Since the United States approved the Bitcoin spot ETF, Hong Kong financial institutions are accelerating the layout of virtual asset spot ETFs. There is news that some fund company subsidiaries have submitted relevant applications, and some have not yet Those who submitted applications are also speeding up preparations.

According to relevant sources from China Asset Management (Hong Kong), they believe that there are certain restrictions on futures-based virtual asset ETFs because futures rollover will bring greater costs. In contrast, spot ETFs will become the mainstream of the market in the future. Currently, ChinaAMC Hong Kong is following the guidance framework of the Hong Kong Securities Regulatory Commission, actively researching the operating mechanism of spot virtual asset ETFs, and exploring the development potential of virtual asset ETFs in Hong Kong.

The report mentioned that institutions have submitted applications for virtual asset spot ETFs. Another fund company pointed out that the U.S. Bitcoin spot ETF is limited to cash subscriptions and redemptions. The difference is that according to the content of the circular disclosed by the Hong Kong Securities Regulatory Commission , the Hong Kong Bitcoin Spot ETF will adopt a variety of cash and physical redemption methods.

People from this fund company believe that for investors, ETFs can bring better liquidity and are more convenient than cryptocurrency exchange transactions. At the same time, ETFs are more standardized. The pricing mechanism can avoid price fluctuations. 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.

Weng Xiaoqi, chief operating officer of HashKey Group, said in January that more than 10 fund companies are actively preparing to launch spot ETFs in Hong Kong, and 7 to 8 of them have entered the actual promotion stage. Multiple Hong Kong spot ETF applications that have reached substantial cooperation with HashKey are also being accelerated, and we hope to promote the development of Hong Kong spot ETFs as soon as possible in the next few months.

Will it become an important channel for capital inflows into Asia?

It is worth noting that the interviewed institutions generally believe that Hong Kong virtual asset ETFs have greater room for development. In the view of the subsidiaries of these funds, As supervision continues to improve, products become more abundant, and the number of participating institutions and investors continues to increase, Hong Kong virtual asset spot ETFs are expected to become an important channel for Asian capital inflows.

At the same time, the interviewed institutions believe that the Hong Kong Securities Regulatory Commission’s positive attitude towards virtual asset spot ETFs also reflects Hong Kong’s in-depth understanding and recognition of blockchain technology, which will help strengthen Hong Kong’s position as a leading digital asset in the region. Its status as an asset center supports the development of Hong Kong as Asia’s preferred ETF market, thereby further enhancing Hong Kong’s attractiveness and competitiveness as an international financial center.

China Asset Management (Hong Kong) stated that the SEC’s approval of spot Bitcoin ETF has promoted the development of related products in the Hong Kong market to a certain extent and provided a reference example for the Hong Kong market. However, the virtual reality of the two places has There are certain differences in asset ecology and regulatory requirements. Hong Kong products need to develop a product framework suitable for Hong Kong regulators and investors.

Some Hong Kong fund subsidiaries believe that Hong Kong’s new virtual asset supervision regulations and the listing of virtual asset spot ETFs may promote active cooperation between the virtual asset industry and supervision to provide foreign investors with compliant, safe and inclusive services. Investment channels may also help Hong Kong cultivate a globally competitive Web 3.0 industrial ecosystem in the long run.

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