Hong Kong to approve Asia’s first Bitcoin ETF in April: Report

Asia’s first Bitcoin ETF: Hong Kong is poised to approve its first spot bitcoin exchange-traded funds (ETFs) this month, with announcements expected as early as next week, according to sources familiar with the matter. The development would position Hong Kong as Asia's first market, offering Bitcoin ETFs, exceeding industry forecasts for launches later this year.

Regulatory authorities have expedited the approval process, signalling a proactive approach amidst Hong Kong's efforts to enhance its appeal as a global financial centre amid pandemic-related restrictions, China's economic challenges, and geopolitical tensions with the United States.

Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto wealth manager, noted the role of Hong Kong ETFs, anticipating potential inflows of fresh global investment and a boost in crypto adoption.

The United States set the precedent with the launch of the first US-listed ETFs tracking spot Bitcoin in January, attracting approximately $12 billion in net inflows, according to data from BitMEX Research. Bitcoin has surged over 60 per cent this year, reaching an all-time high of $73,803 in March, before trading at around $69,000 on Wednesday.

Several Chinese and Hong Kong asset managers, including China Asset Management, Harvest Fund Management, and Bosera Asset Management's Hong Kong units, have reportedly submitted applications to launch ETFs, according to sources. However, neither the Hong Kong Securities and Futures Commission (SFC) nor the mentioned companies have commented on the matter.

Despite cryptocurrency trading being prohibited in China, Chinese financial institutions operating offshore have shown interest in participating in crypto asset development in Hong Kong. In late 2022, Hong Kong approved its first ETFs for cryptocurrency futures, with the CSOP Bitcoin Futures ETF witnessing significant growth in assets under management.

Value Partners, a Hong Kong-based firm, has expressed intentions to explore the launch of a spot bitcoin ETF, although it has not confirmed the submission of an application.

(With Reuters inputs)