Hong Kong stands at the forefront of embracing crypto as it eyes the possibility of introducing spot bitcoin exchange-traded funds (ETFs), riding on the coattails of potential approval in the United States. Yat Siu, Chairman of Animoca Brands, highlighted Hong Kong’s favorable regulatory environment and the Securities and Futures Commission’s (SFC) openness toward digital assets, laying the groundwork for potential spot bitcoin ETFs.
Siu emphasized the relatively uncontroversial nature of Bitcoin spot ETFs, citing the SFC’s recent statements expressing willingness to widen access to digital assets. The ongoing progress in the U.S., with multiple filings adapting to SEC demands, serves as a guiding path for Hong Kong’s potential move into this territory.
In contrast to the stringent measures imposed in mainland China on crypto trading and mining, Hong Kong has actively welcomed crypto firms. Policies released in 2022 aimed to fortify the city’s status as a global financial hub, including the launch of a licensing regime for virtual asset trading platforms, facilitating licensed exchanges to offer retail trading services.
Julia Leung, CEO of Hong Kong’s SFC, conveyed the regulator’s interest in assessing spot crypto ETFs, emphasizing a favorable stance toward innovative technologies enhancing efficiency and customer experience. Presently, the city has listed several futures-based crypto ETFs, indicating a growing momentum within the sector.
Echoing this optimism, Glenn Woo, Head of Sales APAC at Blockdaemon, highlighted the burgeoning appetite for spot bitcoin ETFs, drawing from his extensive experience in Hong Kong’s traditional financial industry. While challenges persist among traditional asset managers, Woo foresees a growing appetite post-U.S. ETF approval, positioning Hong Kong as a potential front-runner in Asia for this financial innovation.
