Crypto industry participants were buoyed by the news of a potential launch of spot exchange-traded funds (ETF) based on digital assets in Hong Kong for retail investors.
The potential entry of the jurisdiction into the crypto-ETF market could be a significant development in the US–China economic confrontation, according to former BitMEX head Arthur Hayes.
Competition is amazing. If the US has its proxy asset mngr, BlackRock, launching an ETF, China needs its proxy asset mngr to launch one too.
The US v China economic war is great for $BTC. pic.twitter.com/ok7xipN4M5
— Arthur Hayes (@CryptoHayes) November 6, 2023
“Competition is amazing. If the US has its proxy asset manager BlackRock launching an ETF, China needs its proxy asset manager to launch one too. The US–China economic war is great for Bitcoin,” says the entrepreneur.
According to the crypto project Coin Bureau, the potential launch of cryptocurrency ETFs in Hong Kong will put pressure on the US Securities and Exchange Commission (SEC), which has long been unable to approve a spot Bitcoin ETF.
Hong Kong is also considering spot #Bitcoin ETFs. It\’s a cursory tale to the SEC that if they continue to stifle capital market innovation in the US, other countries are going to fill the void. https://t.co/ad1Dd7olmt
— Coin Bureau (@coinbureau) November 6, 2023
“For the SEC this is a superficial narrative that if they continue to choke capital market innovation in the United States, other countries will fill the void,” the piece says.
Coin Bureau noted that German DWS Group is also considering cryptocurrency ETFs.
Crypto influencer Lark Davis says the launch of new investment products in Hong Kong signals that “Chinese money does not want to miss its chance”.
Hong Kong going to get spot Bitcoin ETFs now! Chinese money does not want miss out.
— Lark Davis (@TheCryptoLark) November 6, 2023
Hong Kong currently has three crypto futures-based ETFs — Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF.
According to an April report by the Hong Kong Stock Exchange, crypto ETFs have weak demand in the jurisdiction, and their share remains small relative to other global exchange-traded funds on digital assets.
In June, HSBC\’s Hong Kong branch provided trading in Bitcoin and Ethereum ETFs, which were listed on the local stock exchange.