- Hong Kong SFC is likely to approve Spot Bitcoin ETFs as early as April, according to a Reuters report.
- The significance of Hong Kong’s likely BTC ETF approval could be far-reaching as it implies infusion of global capital into Bitcoin.
- Bitcoin price rallied to a high of $71,300 on Thursday amidst positive developments in the ecosystem.
Hong Kong’s Securities and Futures Commission (SFC), an independent statutory body charged with regulating the securities and futures markets, is likely to approve Spot Bitcoin Exchange-Traded Funds (ETFs), according to a Reuters report from April 10.
Sources close to the matter told Reuters that regulators have sped up the approval process and this would make Hong Kong the first Asian region to offer Spot Bitcoin ETFs to traders in 2024.
Hong Kong could approve Spot Bitcoin ETFs in April
Spot Bitcoin ETF approval by the US Securities and Exchange Commission (SEC) ushered in massive institutional capital to BTC, roughly $12 billion, according to Bitmex Research report. Hong Kong SFC’s approval is key to market participants since it is likely to promote the influx of global capital into Bitcoin.
Two sources told Reuters that at least four mainland China and Hong Kong asset managers have submitted applications to launch Spot Bitcoin ETFs.
April 2024 is an important month for crypto traders since Bitcoin’s halving event is slated to occur on April 19. This would reduce the reward for mining Bitcoin and impact the circulating supply of BTC, creating scarcity and likely driving the asset’s price higher.
Other catalysts like Asian capital influx and participation of offshore Chinese financial institutions could drive BTC price higher this cycle. While crypto trading is banned in mainland China, institutions have set their sights on participating in crypto asset developments in the special administrative region of Hong Kong.
Bosera Asset Management (International), a China fund’s Hong Kong arm, has applied to launch a Spot Bitcoin ETF in Hong Kong, a company spokesperson told Nikkei Asia.
The SFC approved the first crypto futures ETFs in 2022.
Bitcoin price rallied to a peak of $71,305 on Thursday.
