Firms in Hong Kong Eye Ethereum (ETH) ETFs to Beat US Competition
Firms in Hong Kong are reportedly aiming to gain an advantage over US companies by launching Ethereum (ETH) exchange-traded funds (ETFs) before their American counterparts. Sing Tao Daily, a Hong Kong news outlet, cites industry insiders who claim that spot ETH ETFs are currently being prepared intensively in the jurisdiction. Livio Weng, the Chief Operating Officer of HashKey Group, a digital asset financial services firm, confirms that the Ethereum spot ETF is highly anticipated by global crypto investors. This move comes after Hong Kongโs Securities and Futures Commission (SFC) published spot crypto ETF requirements in December.
US SEC Delays Decision on Ethereum ETFs
In contrast to the progress being made in Hong Kong, the US Securities and Exchange Commission (SEC) is still evaluating various applications for Ethereum ETFs from renowned asset managers like BlackRock, Grayscale, and Fidelity. The SEC has postponed decisions on several applications. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, suggests that May is the month when the SEC is likely to decide on potential ETH products. However, Balchunas estimates that there is only a 35% chance of approval.
๐ The Regulatory Landscape for ETH ETFs
- The Hong Kong Securities and Futures Commission (SFC) published spot crypto ETF requirements in December.
- The multinational asset management giant Harvest Fund Management submitted the first application for a spot Bitcoin (BTC) ETF in January.
- The US Securities and Exchange Commission (SEC) approved 10 spot BTC ETFs in January after months of collaboration with applicants.
- The SEC is currently assessing multiple bids for Ethereum ETFs from major asset managers but has delayed decisions on many applications.
๐ The Anticipation for Ethereum ETFs
- The Ethereum spot ETF is highly anticipated by global crypto investors.
- Hong Kong firms hope to gain an advantage over US companies by launching ETH ETFs first.
๐ Evaluating the Chances of Approval
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, believes that there is a 35% chance of approval for Ethereum ETFs by the SEC. However, he emphasizes that it is still possible and that in the long term, he expects it to happen. Balchunas acknowledges that there are valid reasons to approve ETH ETFs but suggests that the signs and sources that were positive for BTC spot ETFs are not present this time.
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