Hong Kong Fast-Tracks Approval for Four Bitcoin ETFs; ZA Bank to Offer Stablecoin Services
Summary:
The Securities Regulatory Commission of Hong Kong (SFC) is reportedly fast-tracking the approval process for four Bitcoin spot exchange-traded funds (ETFs), with approval expected by April 15. This move would open up Bitcoin investment to retail investors. Furthermore, ZA Bank in Hong Kong plans to offer banking services for stablecoin issuers, contributing to local Web3 adoption.
Four Bitcoin (BTC) spot exchange-traded funds (ETFs) are reportedly on the fast track for approval by the Securities Regulatory Commission of Hong Kong (SFC). Local media source, Tencent News, anticipates approval for the first set of these spot Bitcoin ETFs by April 15. The SFC originally intended to approve only four such ETFs in the initial phase, as reported by several sources closely familiar with the Hong Kong Securities and Futures Commission.
The latest news reveals that Boshi Fund and Value Partners Financial are in line to join once regulatory approval is granted. At the same time, Harvest International and China Asset Management have made substantial headway in pioneering this progression in cryptocurrency investments.
Following the SFC's approval, the Hong Kong Stock Exchange anticipates a period of around two weeks to complete the necessary listing procedures and arrangements.
Welcoming these spot Bitcoin ETFs in Hong Kong presents an abundance of opportunities for both institutional and individual investors. Changes are anticipated for retail investors who will gain access to Bitcoin investments via ETF acquisitions, indicating a significant alteration in the landscape of investments.
During a keynote address at the HSBC Global Investment Summit, Julia Leung, the CEO of the SFC, emphasized the importance of using disruptive technologies responsibly, like distributed ledger technology and tokenization. This is to increase financial industry efficacy whilst ensuring investor protection. Leung also highlighted the alignment of corporate reporting standards with standards of disclosure for sustainability to encourage informed investment decisions that align with sustainability objectives.
The approval for the spot Bitcoin ETFs in Hong Kong follows the approval by the Securities and Exchange Commission (SEC) in the U.S. approximately three months prior. Currently handling around $57 billion in assets, the top 10 spot Bitcoin ETFs, dominated by three funds that represent over 88% of the total, show substantial growth. More traditional institutional investors are showing interest in cryptocurrency as the performance of the stock market becomes more unpredictable.
In an effort to stimulate local Web3 adoption, ZA Bank of Hong Kong recently announced plans to offer specific banking for stablecoin issuers. This includes providing secure custody for fiat reserves used to collateralize digital assets, as announced on April 5.
Published At
4/10/2024 12:06:20 PM
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