The Hong Kong Stock Exchange is the only regulated exchange in Asia to offer bitcoin futures ETFs, and some believe spot crypto ETF products will soon be allowed
Hot on the heels of that bitcoin
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Futures exchange-traded fund (ETF) in Hong Kong, Samsung Asset Management has indicated that it is considering launching a spot bitcoin ETF on the city’s exchange if policy allows it.
“It really depends on how this policy evolves,” Sam Park, chief executive of Samsung Asset Management Hong Kong, said in an interview with Bloomberg published Jan. 13 . He added that Hong Kong authorities have a “clear” interest in developing the city as a crypto hub.
Rebecca Sinn, an ETF analyst at Bloomberg Intelligence, noted that “Hong Kong is well positioned to become Asia’s crypto gateway,” and expects spot bitcoin and ether (ETH) products to be allowed there by the end of the year
Spot markets are markets where exchanges of financial instruments are settled immediately, futures markets are markets where participants buy and sell contracts for later settlement
Samsung launched its Bitcoin Futures ETF on the Hong Kong Exchange and Clearing Market on January 13, where it is currently the only exchange in Asia that supports Bitcoin Futures ETF trading
At the time of publication, the ETF had already gained 4.2% in value.
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Other Hong Kong futures ETFs have also seen interest, with two ETFs managed by CSOP Asset Management raising $73.6 million ahead of a Dec. 16 listing
As CSOP executive Yi Wang noted at the time: “ETFs do not invest in physical bitcoin and […] there are more regulatory protections for investors than tokens traded on unregulated platforms.”
Related: The Hong Kong watchdog organization aims to limit retailers to liquid products only
In a Twitter Space interview with Bloomberg Asia on January 5, Animoka Brands President Yat Siu indicated that Hong Kong looks more attractive as a listing location than the US and commented:
“Apparently at the time, the U.S. seemed like a market that was probably better. But I would argue that, you know, places like Asia, especially places like Hong Kong with their virtual asset policies, […] basically wanting to be a leader in the space, are starting to look quite attractive. ”
A lack of regulatory clarity is often cited as a reason why so much crypto activity is leaving the US, and it has prompted lawmakers to push for crypto regulation as soon as possible
