Stakeholders in Hong Kong’s crypto industry are urging regulators to expedite the launch of crypto spot exchange-traded funds (ETFs), according to a report from local media agency Singtao. While Hong Kong began accepting applications for spot Bitcoin ETFs in December 2023, no progress has been made regarding their launch in the market.
While two of Hong Kong’s leading Bitcoin futures ETFs reached new peak prices last week, concerns about the risks associated with the crypto industry have delayed the deployment of crypto spot ETFs. Industry leaders hope that a swift introduction of these products will contribute to Hong Kong’s competitiveness in the global crypto landscape.
Meanwhile, industry leaders are advocating for the introduction of Ethereum (ETH) spot ETF products ahead of the United States. According to Singtao’s report, Weng Xiaoqi, COO of Hashkey Group, a licensed crypto service provider in Hong Kong, is one of the stakeholders clamouring for this move.
The push for crypto spot ETFs comes amid surging demand for cryptocurrencies, rising Bitcoin prices, and a bullish trend in the industry. Advocates believe that spot ETFs would provide a more accessible and cost-effective avenue for investors to participate in the market.
Xiaoqi highlighted that Ethereum spot ETFs are currently the most anticipated product globally, and if Hong Kong can introduce them ahead of the United States, it could become a major player in the worldwide crypto market and influence market movements similar to the impact of the U.S. SEC approval of spot Bitcoin ETFs in January.
Despite Mainland China’s anti-crypto stance, Hong Kong has emerged as a promising market for the crypto and web3 industry. There are around 200 physical and virtual asset OTC outlets, including crypto ATMs, and approximately 250 active digital platforms providing virtual asset services in the region. Recently, the government initiated a public consultation on a set of proposed regulations to restrict over-the-counter (OTC) cryptocurrency trades. The new regulations would require OTC traders to follow the same standards as licensed virtual asset service providers (VASPs). The consultation period will run until April 12.
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