Hong Kong Is Set to Launch Its First Spot Bitcoin ETFs.

Hong Kong is on the verge of introducing the first spot bitcoin exchange-traded funds (ETFs), with the first approvals expected next week, according to people with knowledge of the situation. The launch timeline also exceeds industry forecasts for later in the year, as the city prepares to become the first in Asia to offer these popular ETFs.

The move comes as Hong Kong regulators are accelerating the approval process for these ETFs. The development is part of broader efforts by Hong Kong authorities to revive the city's appeal as a leading financial center, which has been damaged by the pandemic, China's economic difficulties and tensions between China and the United States.

As reported by BitMEX Research, the first ETFs tracking spot bitcoin in the United States launched in January and have generated net inflows of approximately $12 billion since then. Bitcoin has experienced significant growth this year, hitting a record high of $73,803 in March and trading around $69,000 on Wednesday.

Applications to launch spot bitcoin ETFs have been submitted by at least four asset managers from mainland China and Hong Kong. Applicants include the Hong Kong units of China Asset Management, Harvest Fund Management and Bosera Asset Management, sources said.

The parent companies of these Hong Kong units are some of China's largest investment fund firms, each managing assets exceeding 1 trillion yuan ($138 billion). While cryptocurrency trading remains prohibited in mainland China, offshore Chinese financial institutions continue to show interest in participating in the development of crypto assets in Hong Kong.

Hong Kong's regulator, the Securities and Futures Commission (SFC), had no comment and the Chinese companies involved also declined to comment. However, it was noted that the Hong Kong units of China Asset Management and Harvest Fund Management received approval earlier this month to manage portfolios investing more than 10% in virtual assets.

$BTC