The cryptocurrency neighborhood is happy in regards to the Hong Kong authorities reportedly weighing the launch of a spot cryptocurrency exchange-traded fund (ETF) amid the continued regulatory pushback towards such merchandise in the USA.
Hong Kong’s potential entrance into spot crypto ETFs may very well be a big improvement within the context of the financial confrontation between the U.S. and China, BitMEX co-founder Arthur Hayes believes.
Hayes took to X (previously Twitter) on Nov. 6 to specific pleasure over competitors between the 2 economies, emphasizing that this competitors will ultimately be good for Bitcoin (BTC).
“Competitors is wonderful. If the U.S. has its proxy asset supervisor, BlackRock, launching an ETF, China wants its proxy asset supervisor to launch one, too,” he wrote.
Competitors is wonderful. If the US has its proxy asset mngr, BlackRock, launching an ETF, China wants its proxy asset mngr to launch one too.
The US v China financial warfare is nice for $BTC. pic.twitter.com/ok7xipN4M5
— Arthur Hayes (@CryptoHayes) November 6, 2023
Cryptocurrency model Coin Bureau was additionally fast to react to the potential spot crypto ETF launch in Hong Kong. In response to the Coin Bureau, the U.S. Securities and Alternate Fee (SEC) may be getting some strain amid different jurisdictions like Hong Kong leaping on the bandwagon of a spot Bitcoin ETF.
“It’s a cursory story to the SEC that in the event that they proceed to stifle capital market innovation in the USA, different nations are going to fill the void,” Coin Bureau wrote on X.
Crypto influencer Lark Davis additionally confused that the newest spot crypto ETF information from Hong Kong exhibits that the Chinese language authorities doesn’t need to miss out on crypto alternatives.
“Hong Kong going to get spot Bitcoin ETFs now! Chinese language cash doesn’t need miss out,” Davis acknowledged.
Hong Kong is contemplating permitting retail traders to entry spot ETFs linked to cryptocurrencies like Bitcoin, offering regulatory issues are met, Securities and Futures Fee CEO Julia Leung stated, in accordance with a Bloomberg report on Nov. 5. The SFC didn’t instantly reply to Cointelegraph’s request for remark.
Hong Kong’s potential transfer into spot Bitcoin ETFs comes as not less than a dozen funding corporations within the U.S. search to launch related merchandise within the nation regardless of long-running pushback from the Securities and Alternate Fee.
Though each Hong Kong and the U.S. have permitted crypto ETFs linked to futures contracts, the jurisdictions are but to approve a spot crypto ETF. Not like a futures Bitcoin ETF, which tracks futures contracts to copy BTC costs, a spot Bitcoin ETF immediately holds BTC, permitting traders to realize publicity to the asset.
Associated: Spot Bitcoin ETF hype reignited zest for blockchain video games: Yat Siu
The U.S. was the primary to launch futures-linked crypto ETFs in 2021, with Hong Kong following in its footsteps in late 2022 with the launch of CSOP cryptocurrency futures merchandise. Mixed with the Samsung Bitcoin Futures Energetic ETF, Hong Kong has about $65 million in crypto ETF property, in accordance with Bloomberg. The futures crypto ETFs have seen low demand in Hong Kong, with their share nonetheless being tiny in comparison with different world crypto funds.
Hong Kong and Shanghai Banking Company — the most important financial institution in Hong Kong — reportedly enabled its prospects to purchase and promote Bitcoin and Ether (ETH)-based ETFs in June 2023.
Journal: Crypto regulation — Does SEC Chair Gary Gensler have the ultimate say?