“Call for Accelerated Approval of Bitcoin ETFs in Hong Kong”

Hong Kong’s cryptocurrency industry leaders are urging authorities to fast-track the approval and subsequent launch of spot bitcoin exchange-traded funds (ETFs), expressing concerns that the delay could disadvantage Asian investors, as reported. According to local sources, Hong Kong’s monetary authorities began accepting applications for spot bitcoin ETFs in December 2023, but as of now, no such products have been introduced. Additionally, there are considerations for the approval of spot ethereum ETFs. Industry insiders believe that launching these products ahead of the United States would bolster Hong Kong’s standing in the global cryptocurrency market.

Weng Xiaoqi, CEO of Hashkey Exchange, highlighted the potential repercussions of the delay in approving Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). He emphasized that the delay might expose Asian investors to higher fees and potentially lock them out from favorable entry points.

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“The delay in spot ETFs launch by six months also means a delay in U.S. capital inflow into the market. This could result in higher purchasing costs and entry barriers, along with the risk of being dominated by U.S. capital,” Xiaoqi stated.

To expedite the launch of crypto ETFs in Hong Kong, Xiaoqi disclosed that his exchange platform and its partners are actively advocating for it. Many anticipate that the launch of these ETFs will attract substantial capital to the region.

Moreover, Xiaoqi argued for the potential benefits of Hong Kong being the first to launch an ethereum spot ETF. He believes this move would solidify the city’s position as Asia’s financial hub and potentially surpass the United States as the leader in the global cryptocurrency market.