Hong Kong’s highly anticipated spot bitcoin exchange-traded funds (ETFs) are slated to launch by the end of April, according to various industry sources.
NEW: 🇭🇰 Hong Kong #Bitcoin ETFs to start trading by 30th April and could bring in $25 billion: Reports
Just a matter of time 🚀 pic.twitter.com/Y1Xo4JVrO7
— Bitcoin Magazine (@BitcoinMagazine) April 17, 2024
The Hong Kong Securities and Futures Commission (SFC) recently approved several fund managers to offer spot bitcoin ETFs. Following this, OSL, a crypto infrastructure provider for some approved fund managers, stated that the bitcoin ETFs are aiming to go live as early as late April.
Markus Thielen, founder of research firm 10x, also stated that the Bitcoin ETFs could start trading by April 30th. The launch timeline will depend on finalizing details with regulators.
Once listed, analysts predict the accessible funds could attract significant capital inflows. Singapore-based Matrixport expects mainland Chinese investors to pour up to $25 billion into Hong Kong’s Bitcoin ETFs via the Southbound Stock Connect program.
Thielen echoed this sentiment, stating the ETFs could yield $25 billion if fully accessible to Chinese investors. However, he noted that Chinese participation may take at least six months due to evolving regulations.
Nonetheless, the ETFs mark a milestone for Bitcoin adoption in Asia. They provide regulated exposure to bitcoin, opening the assets to a broader range of investors.
The funds’ unique in-kind redemption feature also makes them competitive globally. This allows swapping bitcoin directly for ETF shares, increasing efficiency.
By approving the ETFs, Hong Kong cements its position as a rising Bitcoin hub. The city is moving swiftly to license Bitcoin companies and products amid growing demand.
With bitcoin’s next halving just days away, the ETF launch timing is opportune. Many predict the supply shock event will propel Bitcoin to new highs, benefiting linked investment vehicles.
If successful, Hong Kong’s spot ETFs could prompt other Asian jurisdictions to follow suit. The domino effect would boost regional participation and maturity for the Bitcoin market.