Hong Kong’s Fast Action on Spot Ethereum ETF
In response to the growing crypto market and regulatory approval in Hong Kong, there are plans to launch spot Bitcoin ETFs and spot Ethereum ETFs. While the spot Bitcoin ETF applications are progressing quickly, recent reports suggest that Hong Kong may launch a spot Ethereum ETF before the United States.
Spot Bitcoin ETF Applications Underway
Ten financial institutions, including Harvest Finance, are currently in the process of applying for spot Bitcoin ETFs in Hong Kong. The industry is calling for swift approval of these ETFs, particularly the spot Ethereum ETF, as reported by local media on March 11.
Following the approval of 11 spot Bitcoin ETFs in the United States, there has been a surge in Bitcoin and crypto adoption. The net inflow has exceeded $9.5 billion, and total assets under management (AUM) have surpassed $55 billion. The BlackRock Bitcoin ETF now holds more Bitcoin than Michael Saylor’s MicroStrategy.
Hong Kong Takes the Lead with Spot Ethereum ETF
With increasing adoption of cryptocurrencies in Hong Kong and regulatory support, preparations are underway to launch a spot Ethereum ETF. In contrast, spot Ether ETF applications from BlackRock and Fidelity have been delayed by the U.S. SEC, with experts predicting approval by the end of May. Hong Kong aims to take the lead in launching a spot Ethereum ETF amid growing uncertainty surrounding its approval in the United States. It is expected that Hong Kong will be able to launch spot ETFs, derivatives, and other trading products as soon as possible.
Weng Xiaoqi, COO of HashKey Group, commented on the delay: “The postponed launch of spot ETFs means that U.S. capital will enter the market six months later. By that time, they will face higher purchase costs and entry points, as well as the risk of being locked in by U.S. capital.”
Bitcoin Products Drive Price Surge
The demand for spot Bitcoin ETFs in the United States, as well as Bitcoin ETPs and ETNs in Europe, has contributed to a surge in Bitcoin prices. Last week, Bitcoin reached a new all-time high (ATH) of $70,000.
In Hong Kong, two Bitcoin futures ETFs have also experienced significant growth during the crypto market rally. The Southern Bitcoin ETF reached a high of 27.5 yuan last week, which is 2.5 times higher than its listing price. Similarly, the Samsung Bitcoin ETF reached a high of 26.8 yuan, 2.2 times higher than its listing price.
Currently, BTC is trading at $68,754 after a slight pullback due to profit booking. Meanwhile, ETH is trading at $3,854, also retracing from its peak of $4,000 last week.
Hot Take: Hong Kong’s Advantage in Launching Spot Ethereum ETF
Hong Kong’s proactive approach to launching spot Ethereum ETFs gives it an advantage over the United States. By capitalizing on the growing crypto market and regulatory support, Hong Kong aims to attract investment and establish itself as a leader in the cryptocurrency space.
While the spot Bitcoin ETF applications are progressing smoothly in Hong Kong, the delay in approving spot Ether ETFs in the United States creates an opportunity for Hong Kong to gain a head start. By launching spot Ethereum ETFs sooner than their U.S. counterparts, Hong Kong can attract capital and provide investors with early access to the Ethereum market.
With the increasing adoption of cryptocurrencies and the positive sentiment surrounding Bitcoin and Ethereum, the launch of spot ETFs in Hong Kong is expected to fuel further growth in the crypto market. It remains to be seen how quickly the spot Ethereum ETF can be approved and launched, but Hong Kong’s proactive approach puts it in a favorable position.
As the crypto market continues to evolve and new investment opportunities arise, it is important for investors to stay informed and seize the advantages offered by different jurisdictions. Hong Kong’s potential launch of a spot Ethereum ETF highlights the importance of regulatory clarity and proactive measures in fostering the growth of the cryptocurrency industry.
By
By
By
By
By