LIVEOpinion: The launch of a crypto ETF in Hong Kong will push the SEC to a decision
Crypto industry participants have been encouraged by reports of the possible launch of digital asset-based spot exchange-traded funds ( ETFs ) in Hong Kong for retail investors.
The jurisdiction's potential entry into the crypto-ETF market could be an important event in the context of the economic confrontation between the United States and China, says ex-head of BitMEX Arthur Hayes.
The competition is amazing. If the US has a proxy asset manager, BlackRock, launching an ETF, then China also needs a proxy asset manager. The economic war of the United States against China is good for Bitcoin,” the entrepreneur believes.
According to crypto project Coin Bureau, the potential launch of a crypto ETF in Hong Kong would put pressure on the US Securities and Exchange Commission (SEC), which has long been unable to approve a Bitcoin spot exchange-traded fund.
“For the SEC, this is a facile narrative that if they continue to stifle capital market innovation in the United States, other countries will fill the void,” it said.
Coin Bureau noted that the German DWS Group is also mulling the idea of cryptocurrency ETFs.
Crypto influencer Lark Davis sees the launch of new investment products in Hong Kong as a signal that “Chinese money doesn’t want to miss its chance.”
Currently, Hong Kong has registered three exchange-traded funds based on cryptocurrency futures - Samsung Bitcoin Futures Active ETF , CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF .
According to an April report from the Hong Kong Stock Exchange , crypto ETFs are in low demand in the jurisdiction and their share is still small compared to other global digital asset exchange-traded funds.
Let us recall that in June, the HSBC branch in Hong Kong provided the opportunity to trade ETFs for Bitcoin and Ethereum, which were listed on the local stock exchange.
