The community responded to the HK spot Bitcoin ETF news
Amid the ongoing regulatory push against such products in the United States, the cryptocurrency community was excited to see the Hong Kong government launch a spot cryptocurrency exchange-traded fund (ETF).
Hong Kong's potential entry into crypto ETFs could be a major development in the context of the economic conflict between the US and China, believes Arthur Hayes, co-founder of BitMEX.
Hayes took to X (formerly Twitter) to express his excitement about the competition between the two economies on November 6, stressing that this competition will ultimately be good for Bitcoin (BTC).
“The competition is fierce. If US proxy asset manager BlackRock launches an ETF, China will need its own proxy asset manager to launch one,” he wrote.
Competition is amazing. If the US launched a proxy asset mngr, BlackRock, an ETF, China would need a proxy asset mngr to launch one.
US vs China economic war is good for $BTC. pic.twitter.com/ok7xipN4M5
— Arthur Hayes (@CryptoHayes) November 6, 2023
Cryptocurrency brand Coin Bureau has responded quickly to a potential spot crypto ETF launch in Hong Kong. According to the Coin Bureau, the US Securities and Exchange Commission (SEC) may be exerting some pressure among other jurisdictions, such as Hong Kong.
“If the United States continues to stifle capital market innovation, it is a short story for the SEC that other countries may fill the gap,” the Coin Bureau wrote on X.
Crypto influencer Lark Davis has warned that the Chinese government doesn't want to miss out on crypto opportunities, with the latest spot crypto ETF news out of Hong Kong.
Hong Kong is about to get Bitcoin ETFs now! He doesn't want Chinese money to escape,” Davis said.
Hong Kong is considering allowing retail investors access to cryptocurrencies linked to regulatory concerns, Securities and Futures Commission CEO Julia Ling said, according to a Bloomberg report on Nov. 5. The SFC did not immediately respond to Cointelegraphs. Request for feedback.
Hong Kong's potential move to spot bitcoin ETFs comes as at least a dozen investment firms in the United States look to launch similar products in the country despite long-standing pushback from the Securities and Exchange Commission (SEC).
Although both Hong Kong and the US allow crypto ETFs linked to futures contracts, the jurisdictions have yet to approve spot crypto ETFs. Unlike a futures Bitcoin ETF that tracks futures contracts to replicate BTC prices, a spot Bitcoin ETF holds BTC directly, allowing investors to gain exposure to the asset.
Related: Spot Bitcoin ETF hype for blockchain games zest rejected: Yat Siu
US to launch futures-linked crypto ETFs in 2021 Hong Kong first Following in his footsteps by launching CSOP cryptocurrency futures in late 2022. Combined with the Samsung Bitcoin Futures Active ETF, Hong Kong has about $65 million in crypto ETF assets, according to Bloomberg. Futures crypto ETFs have seen low interest in Hong Kong, their shares are still very small compared to other global crypto funds.
Hong Kong and Shanghai Banking Corporation – Hong Kong's largest bank – has reportedly enabled its customers to buy and sell Bitcoin and Ether (ETH)-based ETFs in June 2023.
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