Hong Kong’s Securities and Futures Commission (SFC) is reportedly close to approving a spot Bitcoin ETF, following the US Securities and Exchange Commission’s approval of its first-ever Bitcoin ETF. Four mainland Chinese and Hong Kong asset managers have submitted applications for the product. Harvest Fund Management, an asset manager in China, is expected to receive approval to launch a spot Bitcoin ETF as early as this month. Other asset managers, including China Asset Management and Bosera Asset Management, have also applied, with more expressing interest in launching a Bitcoin ETF. The approval of a Bitcoin ETF in Hong Kong could have a significant impact on the crypto industry, attracting global investment and driving crypto adoption. In 2021, mainland China banned virtual currency-related activities, leading to a drop in Bitcoin’s value. However, the potential approval of a Bitcoin ETF in Hong Kong could accelerate crypto adoption and bring billions of dollars into the market. The number of crypto users in Hong Kong is projected to reach 1.68 million by 2028, indicating a growing interest in cryptocurrencies. Local investors in China have shown a strong desire for investment vehicles like gold ETFs, and if Bitcoin ETFs were allowed, they would likely generate significant interest. Bitcoin is currently trading at $67,280, experiencing a 5% decline in the last 24 hours and an 8% decline in the last 30 days.
