The cryptocurrency neighborhood is worked up concerning the Hong Kong authorities reportedly weighing the launch of a spot cryptocurrency exchange-traded fund (ETF) amid the continued regulatory pushback in opposition to such merchandise in the US.
Hong Kong’s potential entrance into spot crypto ETFs might be a big growth within the context of the financial confrontation between the U.S. and China, BitMEX co-founder Arthur Hayes believes.
Hayes took to X (previously Twitter) on Nov. 6 to precise pleasure over competitors between the 2 economies, emphasizing that this competitors will finally be good for Bitcoin (BTC).
“Competitors is superb. If the U.S. has its proxy asset supervisor, BlackRock, launching an ETF, China wants its proxy asset supervisor to launch one, too,” he wrote.
Competitors is superb. If the US has its proxy asset mngr, BlackRock, launching an ETF, China wants its proxy asset mngr to launch one too.
The US v China financial conflict is nice for $BTC. pic.twitter.com/ok7xipN4M5
— Arthur Hayes (@CryptoHayes) November 6, 2023
Cryptocurrency model Coin Bureau was additionally fast to react to the potential spot crypto ETF launch in Hong Kong. Based on the Coin Bureau, the U.S. Securities and Change Fee (SEC) could be getting some strain amid different jurisdictions like Hong Kong leaping on the bandwagon of a spot Bitcoin ETF.
“It’s a cursory story to the SEC that in the event that they proceed to stifle capital market innovation in the US, different international locations are going to fill the void,” Coin Bureau wrote on X.
Crypto influencer Lark Davis additionally burdened that the newest spot crypto ETF information from Hong Kong exhibits that the Chinese language authorities doesn’t wish to miss out on crypto alternatives.
“Hong Kong going to get spot Bitcoin ETFs now! Chinese language cash doesn’t need miss out,” Davis acknowledged.
Hong Kong is contemplating permitting retail buyers to entry spot ETFs linked to cryptocurrencies like Bitcoin, offering regulatory issues are met, Securities and Futures Fee CEO Julia Leung stated, in keeping with a Bloomberg report on Nov. 5. The SFC didn’t instantly reply to Cointelegraph’s request for remark.
Hong Kong’s potential transfer into spot Bitcoin ETFs comes as a minimum of a dozen funding corporations within the U.S. search to launch related merchandise within the nation regardless of long-running pushback from the Securities and Change Fee (SEC).
Though each Hong Kong and the U.S. have permitted crypto ETFs linked to futures contracts, the jurisdictions are but to approve a spot crypto ETF. Not like a futures Bitcoin ETF, which tracks futures contracts to duplicate BTC costs, a spot Bitcoin ETF instantly holds BTC, permitting buyers to achieve publicity to the asset.
Associated: Spot Bitcoin ETF hype reignited zest for blockchain video games: Yat Siu
The U.S. was the primary to launch futures-linked crypto ETFs in 2021, with Hong Kong following in its footsteps in late 2022 with the launch of CSOP cryptocurrency futures merchandise. Mixed with the Samsung Bitcoin Futures Lively ETF, Hong Kong has about $65 million in crypto ETF belongings, in keeping with Bloomberg. The futures crypto ETFs have seen low demand in Hong Kong, with their share nonetheless being tiny in comparison with different international crypto funds.
Hong Kong and Shanghai Banking Company — the largest financial institution in Hong Kong — reportedly enabled its prospects to purchase and promote Bitcoin and Ether (ETH)-based ETFs in June 2023.
Crypto regulation — Does SEC Chair Gary Gensler have the ultimate say?
