Following the lead of the United States, when will the Hong Kong BTC spot ETF be listed?

php editor’s new relay report: The focus of global attention, when will the Bitcoin spot exchange-traded funds (BTC ETF) in the United States and Hong Kong be listed? This highly anticipated event has aroused heated discussion and attention in the market, and investors are looking forward to its impact and performance after listing. What changes will the listing of BTC ETF bring to the Bitcoin market? Stay tuned to our latest coverage for more updates and analysis on BTC ETF.

The U.S. Securities and Exchange Commission’s (SEC) approval of a Bitcoin spot ETF marks a new milestone for the crypto industry. As these "US stock traders" enter the market, the popularity of Bitcoin ETFs continues to rise, attracting a large influx of funds. Net inflows into these 11 Bitcoin ETFs exceeded $2.27 billion last week alone (February 12-February 16), according to BitMEX Research.

It is worth noting that while these ETFs are occupying market funds, they are also constantly injecting new funds into the Bitcoin market. Since the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on January 10, local time, the price of Bitcoin has increased by more than 10%.

On February 20, total net inflows into Bitcoin spot ETFs reached $137 million. GBTC had a single-day net outflow of $137 million, and other ETFs except Grayscale had a total net inflow of $274 million. Among them, BlackRock ETF IBIT had the largest single-day net inflow, reaching $154 million, accounting for 56% of the total single-day inflow. Trading volume for the Bitcoin spot ETF (excluding GBTC) hit $2 billion, a new high since its U.S. debut last month.

As of the close of trading on February 20, Bitcoin ETFs had more than $37 billion in total assets under management. Among them, the top three Bitcoin ETFs in terms of assets under management are: GBTC, with assets under management of US$23.567 billion; IBIT, with assets under management of US$5.68 billion; FBTC, with assets under management of US$4.25 billion.

Now, the baton has been passed to Hong Kong. Donald Day, COO of Hong Kong-based virtual asset exchange VDX, believes the SEC’s decision will prompt its peers to “seriously consider whether similar ETFs are permissible and desirable.” He noted that the Securities and Futures Commission’s announcement in December that it was preparing to authorize such funds had in principle opened the way for issuers to launch spot crypto ETFs in Hong Kong.

We are getting closer and closer to the listing of Asia’s first virtual asset spot ETF in Hong Kong.

Hong Kong is expected to list a BTC spot ETF in the first quarter

On the same day that the US SEC approved the first Bitcoin spot ETF, Wu Jiezhuang, a member of the National Committee of the Chinese People’s Political Consultative Conference and a member of the Hong Kong Legislative Council, issued a document saying that Hong Kong We must also dare to be a "leader" in the field of virtual assets. On the one hand, the Hong Kong Securities and Futures Commission has previously stated that it is ready to accept applications for spot Bitcoin ETFs. The SAR government should promote the implementation of spot ETFs as soon as possible; on the other hand, it must strengthen the popularization of virtual assets. educate.

The current Hong Kong Bitcoin Spot ETF is in the actual advancement stage.

Chen Peiquan, executive director of Victory Securities, a licensed virtual asset brokerage in Hong Kong, revealed that the United States allows spot ETFs to be listed, which is regarded by the encryption industry as the key to achieving a "connection" between virtual currencies and actual exchanges, which will inevitably lead to more investors participating. Go in. Many fund companies in Hong Kong are already intensively making preparations. It is expected that as soon as the first quarter of this year, many fund companies will express their willingness to apply, or even successfully apply.

In addition, Yibo Financial and Xinhuo Asset Management have publicly stated that they are preparing for ETF-related applications. Serra Wei, CEO of digital asset custody company Aegis Custody, revealed that the company is negotiating with four asset management companies to list spot encryption products in Hong Kong.

Currently, there are two BTC futures ETFs and one ETH futures ETF listed in Hong Kong, issued by Samsung Assets and CSOP. The former has publicly stated that it "does not rule out the possibility of exploring the launch of spot ETFs," while the latter revealed that it will observe market demand before considering it.

As Hong Kong gradually establishes and improves the encryption regulatory system and approves virtual asset futures ETFs, it already has the listing environment and conditions for Bitcoin spot ETFs. Luo Boren, head of securities product development at the Hong Kong Exchange, said that the Hong Kong Exchange is ready to seize the opportunities brought by thematic investment and will work closely with issuers and various stakeholders to smoothly introduce this new product into the Hong Kong ETF market.

Referring to the approval process of traditional ETFs, as long as the Bitcoin spot ETF application institution meets regulatory requirements in terms of redemption mechanism, custody method, risk control system, etc., it will be witnessed in Hong Kong in a matter of weeks or months at the earliest. Spot virtual asset ETF was born.

Opening a new era of virtual asset investment

Chen Peiquan pointed out that many investors have not dared to invest in virtual currencies. The main reasons include not adapting to new investment methods, or fear of thunderstorms on the investment platform. Virtual asset spot ETFs can solve these two major pain points: on the one hand, investors can participate in investments through familiar channels; on the other hand, the China Securities Regulatory Commission requires institutions that issue spot ETFs to use Hong Kong licensed platforms, and the platforms themselves also purchase insurance. Not only are investment risks protected, it will also benefit the development of Hong Kong’s virtual asset platforms and securities firms.

Although Hong Kong is slightly behind the United States in launching BTC spot ETFs, Hong Kong’s regulatory circular does not limit applications to BTC as a single subject. Therefore, Hong Kong is likely to expand the category of virtual asset ETFs in the future, including mainstream virtual assets such as ETH. Asset ETFs may be the first to be listed in Hong Kong.

For market investors, the listing of virtual asset spot ETFs will significantly lower the threshold for participation, and in a protected environment, they can grasp the growth dividends of virtual assets without having to personally take charge of the assets on the chain.

For institutions such as asset management companies, securities firms, and funds, they can also seek business growth from the market growth of virtual asset ETFs and capture opportunities for differentiated customer acquisition and overtaking in corners through new business lines. Institutions that keenly grasp the development period of virtual assets from niche to mainstream and are stuck in the track can seize more traffic dividends brought by new assets.

For the virtual asset market, spot ETFs will continue to draw funds from traditional financial markets and are expected to usher in a new growth cycle.

Currently, the asset management scale of three virtual asset futures ETFs in Hong Kong is approximately HK$384 million, showing that virtual assets already have a certain market in Hong Kong. With improved supervision, rich products, and participating institutions and investors With the increase, Hong Kong virtual asset spot ETF is expected to become the main channel for Asian capital inflows.

In view of the fact that the AUM of many Hong Kong-funded and Chinese-funded Hong Kong subsidiaries financial institutions has reached hundreds of billions of dollars, 1% of the virtual asset allocation will be for the virtual asset market bring huge increments. It is expected that the capital scale of Hong Kong virtual asset spot ETFs is expected to reach tens of billions of dollars in the next few years. Hong Kong, with its open policies, will lead a new era of virtual asset investment.

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