|
|
Edited by Indra55 at 22-12-2023 04:38 AM
Reportedly, the Hong Kong government is considering launching a spot cryptocurrency exchange-traded fund (ETF), while the United States is still resistant to such products. The cryptocurrency community is excited about this development.
BitMEX co-founder Arthur Hayes believes that with the backdrop of economic competition between the US and China, Hong Kong's potential entry into the spot cryptocurrency exchange market could be a significant development.
On November 6, Hayes expressed his excitement on X (formerly known as Twitter) about the competition between the two economies and emphasized that this competition would ultimately benefit Bitcoin.
""Competition is amazing. If the US has its asset management company BlackRock launching an ETF, China will also need its asset management parent company to launch an ETF,"" he wrote. ""The economic war between the US and China is great for BTC.""
The cryptocurrency brand Coin Bureau also quickly reacted to the possibility of Hong Kong launching a spot cryptocurrency ETF. According to Coin Bureau, as Hong Kong and other jurisdictions join the ranks of Bitcoin spot ETFs, the US Securities and Exchange Commission (SEC) may face some pressure.
Coin Bureau wrote on X, ""This is just a rough story for the SEC. If they continue to stifle capital market innovation in the United States, other countries will fill the void.""
Cryptocurrency influencer Lark Davis also emphasized that the latest news about Hong Kong's cryptocurrency ETF indicates that the Chinese government does not want to miss out on the opportunities in the cryptocurrency space.
Davis stated, ""Hong Kong is getting a Bitcoin spot exchange now! The Chinese government doesn't want to miss out.""
According to Bloomberg on November 5, Julia Leung, CEO of the Securities and Futures Commission, said that Hong Kong is considering allowing retail investors to access spot exchange-traded funds related to cryptocurrencies like Bitcoin, provided that regulatory concerns are met. The regulator did not immediately respond to Coindegraph's request for comment.
Hong Kong could potentially enter the Bitcoin spot exchange market, while in the United States, at least a dozen investment firms are seeking to launch similar products, despite long-standing resistance from the SEC.
Although both Hong Kong and the United States allow cryptocurrency ETFs linked to futures contracts, spot cryptocurrency ETFs have not yet been approved in these jurisdictions. Unlike futures-based Bitcoin ETFs that track futures contracts to replicate BTC's price, spot Bitcoin ETFs directly hold BTC, allowing investors to have exposure to the asset.
In 2021, the United States led the way in launching cryptocurrency exchange-traded funds linked to futures, and Hong Kong quickly followed by launching CSOP cryptocurrency futures products in late 2022. According to Bloomberg, along with the Samsung Bitcoin futures active ETF, Hong Kong has around $65 million in cryptocurrency ETF assets. Demand for futures cryptocurrency ETFs in Hong Kong is relatively low, and its share remains small compared to other global cryptocurrency funds.
Reportedly, in June 2023, Hong Kong's largest bank, HSBC, allowed its customers to buy and sell exchange-traded funds based on Bitcoin and Ethereum (ETH).
Cryptocurrency regulation – Does SEC Chairman Gary Gensler have the final say? |
|
Post time 10-11-2023 20:43:19