The fund size of the Hong Kong virtual asset spot ETF is expected to reach billions of US dollars.
Author: Tax Bureau of Intelligence
The approval of the Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC) marks a new milestone for the cryptocurrency industry. With these "U.S. stock traders" entering the market, the popularity of Bitcoin ETFs continues to rise, attracting a large influx of funds. According to data from BitMEX Research, the net inflow of funds into these 11 Bitcoin ETFs exceeded $2.27 billion just last week (February 12 to February 16).
It is worth noting that while these ETFs are capturing market funds, they are also continuously injecting new funds into the Bitcoin market. Since the SEC approved 11 spot Bitcoin ETFs on January 10, the price of Bitcoin has risen by more than 10%.
On February 20, the total net inflow of Bitcoin spot ETFs reached $137 million. GBTC had a net outflow of $137 million in a single day, while other ETFs excluding Grayscale had a total net inflow of $274 million. Among them, the Belad ETF IBIT had the highest single-day net inflow, reaching $154 million, accounting for 56% of the total inflow for the day. The trading volume of Bitcoin spot ETFs (excluding GBTC) reached $2 billion, setting a new high since its debut in the United States last month.
As of the close on February 20, the total assets managed by Bitcoin ETFs had exceeded $37 billion. Among them, the top three Bitcoin ETFs in terms of managed assets are: GBTC, with managed assets of $23.567 billion; IBIT, with managed assets of $5.68 billion; and FBTC, with managed assets of $4.25 billion.
Now, the baton has been passed to Hong Kong. Donald Day, Chief Operating Officer of VDX, a virtual asset exchange based in Hong Kong, believes that the SEC's decision will prompt its peers to "seriously consider whether similar ETFs are permissible and desirable." He pointed out that the Securities and Futures Commission's statement last December about preparing to authorize such funds has in principle paved the way for issuers to launch spot cryptocurrency ETFs in Hong Kong.
The listing of Asia's first virtual asset spot ETF in Hong Kong is getting closer.
Hong Kong is expected to list a BTC spot ETF in the first quarter.
On the day the SEC approved the first Bitcoin spot ETF, Wu Jiezhuang, a member of the National Committee of the Chinese People's Political Consultative Conference and a member of the Legislative Council of Hong Kong, stated that Hong Kong should also dare to be a "pioneer" in the field of virtual assets. On the one hand, the Securities and Futures Commission of Hong Kong has already indicated its readiness to accept applications for spot Bitcoin ETFs, and the SAR government should expedite the implementation of spot ETFs; on the other hand, it should enhance the popularization of virtual assets.
Currently, the Bitcoin spot ETF in Hong Kong is already in the practical promotion stage.
Chen Peiquan, Executive Director of Victory Securities, a licensed virtual asset brokerage in Hong Kong, revealed that the U.S. allowing spot ETFs to be listed is seen by the cryptocurrency industry as a key "link" between virtual currency and actual exchanges, which will inevitably attract more investors. In Hong Kong, several fund companies are already actively preparing, and it is expected that as early as the first quarter of this year, several fund companies will express their intention to apply, and even successfully apply.
In addition, iBond Financial and New Fire Asset Management have publicly stated that they are preparing for ETF-related applications. Serra Wei, CEO of Aegis Custody, a digital asset custody company, revealed that the company is in negotiations with four asset management companies to list spot cryptocurrency products in Hong Kong.
Currently, there are already two BTC futures ETFs and one ETH futures ETF listed in Hong Kong, issued by Samsung Asset Management and South East England. The former has stated that it "does not rule out exploring the possibility of launching spot ETFs," while the latter has indicated that it will observe market demand before considering.
With Hong Kong gradually establishing and improving its cryptocurrency regulatory system and approving virtual asset futures ETFs, it already has the environment and conditions for listing Bitcoin spot ETFs. Ro Bojun, Head of Securities Product Development at the Hong Kong Stock Exchange, stated that the Hong Kong Stock Exchange is ready to seize the opportunities brought by thematic investments, and will work closely with issuers and stakeholders to smoothly introduce such new products to the Hong Kong ETF market.
Referring to the approval process for traditional ETFs, institutions applying for Bitcoin spot ETFs only need to meet regulatory requirements in terms of redemption mechanisms, custody methods, risk control systems, etc. The spot virtual asset ETF in Hong Kong could be witnessed in as little as a few weeks or as long as a few months.
Opening a new era of virtual asset investment
Chen Peiquan pointed out that many investors have been hesitant to invest in virtual currencies, mainly because they are not accustomed to the new investment method, or they are concerned about investment platforms collapsing. Spot virtual asset ETFs can address these two major pain points: on the one hand, investors can participate in investments through familiar channels; on the other hand, the institutions issuing spot ETFs are required by the Securities and Futures Commission to use licensed platforms in Hong Kong, which also have purchase insurance. This not only guarantees investment risks but also benefits the development of virtual asset platforms and brokerages in Hong Kong.
Although Hong Kong's launch of BTC spot ETFs is slightly behind that of the United States, the regulatory circular in Hong Kong does not limit applications to a single target such as BTC. Therefore, Hong Kong is likely to expand the categories of virtual asset ETFs in the future, with ETFs for mainstream virtual assets such as ETH possibly being listed in Hong Kong first.
For market investors, the listing of spot virtual asset ETFs will significantly lower the entry threshold. They can grasp the growth dividends of virtual assets in a guaranteed environment without needing to personally manage on-chain assets.
For asset management companies, brokerages, funds, and other institutions, they can seek business growth from the expansion of the spot virtual asset ETF market, capturing opportunities for differentiated customer acquisition and overtaking in the curve through new business lines. Institutions that keenly grasp the development period of virtual assets from niche to mainstream and secure their positions in the race can capture more dividends from new assets.
For the virtual asset market, spot ETFs will continue to attract funds from traditional financial markets and are expected to usher in a new growth cycle.
Currently, the total managed assets of three virtual asset futures ETFs in Hong Kong are approximately HK$384 million, demonstrating that virtual assets already have a certain market in Hong Kong. With improved regulation, enriched products, and increased participation from institutions and investors, the spot virtual asset ETF in Hong Kong is expected to become the main channel for fund inflows in Asia.
Given that many Hong Kong and mainland Chinese financial institutions and their subsidiaries in Hong Kong have assets under management reaching billions of U.S. dollars, a 1% allocation to virtual assets will bring substantial increments to the virtual asset market. It is expected that in the next few years, the fund size of the Hong Kong virtual asset spot ETF is expected to reach billions of U.S. dollars. Hong Kong's open policies will lead a new era of virtual asset investment.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
