Spot News

Nov 6, 2023

195 The cryptocurrency community is excited that the Hong Kong government is reportedly considering the launch of a spot cryptocurrency exchange-traded fund (ETF) amid the ongoing regulatory crackdown against such products in the States. -United. Hong Kong’s potential entry into spot crypto ETFs could be an important development amid the economic standoff between the United States and China, believes Arthur Hayes, co-founder of BitMEX. Hayes took to “The competition is incredible. If the US has its proxy asset manager, BlackRock, launching an ETF, China needs its proxy asset manager to launch one too,” he wrote. The competition is incredible. If the US has its proxy asset manager, BlackRock, launching an ETF, China needs its proxy asset manager to launch one too. The economic war between the United States and China is great for $BTC . pic.twitter.com/ok7xipN4M5 Cryptocurrency brand Coin Bureau was quick to respond to the potential launch of a spot crypto ETF in Hong Kong. According to the Coin Bureau, the United States Securities and Exchange Commission (SEC) may face pressure from other jurisdictions, such as Hong Kong, that are jumping on the Bitcoin spot ETF bandwagon. “It’s a superficial story for the SEC that if it continues to stifle capital market innovation in the United States, other countries will fill the void,” wrote Coin Bureau on X. Crypto influencer Lark Davis also pointed out that the latest one-off crypto ETF news from Hong Kong shows that the Chinese government does not want to miss out on crypto opportunities. “Hong Kong will now have a spot Bitcoin ETF! Chinese money doesn’t want to run out of it,” Davis said. Hong Kong is considering allowing retail investors access to spot ETFs linked to cryptocurrencies like Bitcoin, provided regulatory concerns are met, said Julia Leung, CEO of the Securities and Futures Commission, according to a report from Bloomberg on November 5. The SFC did not immediately respond to Cointelegraph’s inquiries. request for comment. Hong Kong’s potential move toward spot Bitcoin ETFs comes as at least a dozen U.S. investment firms seek to launch similar products in the country despite long-standing reluctance from the Securities and Exchange Commission (SEC). Although Hong Kong and the United States have permitted crypto ETFs linked to futures contracts, the jurisdictions have yet to approve a spot crypto ETF. Unlike a Bitcoin futures ETF, which tracks futures contracts to replicate BTC prices, a spot Bitcoin ETF directly holds BTC, allowing investors to gain exposure to the asset. Related: Bitcoin ETF hype has reignited enthusiasm for blockchain games: Yat Siu The United States was the first to launch futures-linked crypto ETFs in 2021, and Hong Kong followed suit in late 2022 with the launch of CSOP cryptocurrency futures products. Combined with the Samsung Bitcoin Futures Active ETF, Hong Kong has approximately $65 million in crypto ETF assets, according to Bloomberg. Crypto futures ETFs have seen weak demand in Hong Kong, with their share still minimal compared to other global crypto funds. Geographic distribution of assets in exchange-traded crypto funds. Source: Bloomberg Intelligence Hong Kong and Shanghai Banking Corporation – Hong Kong’s largest bank – will reportedly allow customers to buy and sell ETFs based on Bitcoin and Ether (ETH) in June 2023. Crypto Regulation – Does SEC Chairman Gary Gensler Have the Final Say? Gn bussni