The Securities Regulatory Commission of Hong Kong (SFC) is reportedly expediting the approval process for the first batch of spot Bitcoin exchange-traded funds (ETFs). According to local news agency Tencent News, the SFC is expected to approve four ETFs by April 15. This development marks a significant milestone in the world of crypto investing, as it allows institutional and individual investors to access Bitcoin through ETFs.
Key players in the industry, such as Boshi Fund Value Partners Financial, Harvest International, and China Asset Management, have also made progress in this new investment vehicle while awaiting regulatory approval. The SFC’s approval will give the Hong Kong Stock Exchange a two-week window to complete the listing processes and associated arrangements. This move demonstrates the growing acceptance of cryptocurrencies and new technologies in the financial market.
SFC CEO Julia Leung has expressed her support for the integration of technology in finance. She believes that innovations like distributed tokenization and ledger technology can enhance the efficiency of the financial industry while protecting investors. Leung shared these views as a keynote speaker at the HSBC Global Investment Summit, highlighting the SFC’s commitment to fostering technical innovation in a controlled and secure environment.
In addition to technological advancements, Leung also emphasized the SFC’s efforts to align corporate reporting standards with sustainability disclosure standards. This approach enables informed decision-making in line with sustainability goals and showcases the regulator’s commitment to responsible investments in an evolving industry.
The anticipated approval of spot Bitcoin ETFs in Hong Kong comes three weeks after the United States Securities Exchange Commission authorized its first batch of such securities. This development underscores the increasing global interest in crypto investments, as traditional institutional investors seek alternative options in light of a sluggish stock market performance. Currently, the top ten Bitcoin ETFs hold approximately $57 billion in assets worldwide, with the top three ETFs accounting for over 88% of these assets.
Hong Kong has taken a unique approach to cryptocurrencies compared to ETFs. For example, ZA Bank recently announced its plans to launch banking services for stablecoin issuers, including fiat reserve custody. This initiative, unveiled on April 5, is part of a broader effort to promote local Web3 adoption and demonstrates Hong Kong’s readiness to embrace digital asset innovations.
