Hong Kong prepares to launch ethereum ETFs ahead of US

  • Hong Kong’s financial institutions are seizing the lead in the cryptocurrency industry with the launch of ethereum exchange-traded funds (ETFs) ahead of the United States.
  • Amidst the successful introduction of bitcoin spot ETFs in the United States in January 2024, Hong Kong is eagerly preparing to meet the growing demand for cryptocurrency investment products.
  • Hashkey Exchange CEO Weng Xiaoqi underscores the significance of the U.S. SEC’s approval of spot bitcoin ETFs, warning that delayed market entry could expose Asian investors to increased risks and costs if not promptly addressed.

Hong Kong’s financial institutions are competing for supremacy in the cryptocurrency industry by launching ethereum exchange-traded funds (ETFs) ahead of the United States.

Hong Kong plans to launch Ethereum ETFs

An ethereum ETF is an exchange-traded fund that allows investors to gain exposure to ethereum, a popular cryptocurrency, through traditional stock exchanges.

After bitcoin spot ETFs were successfully introduced in the United States in January 2024, Hong Kong is eager to capitalise on the increasing demand for cryptocurrency investment products.

Hong Kong’s delay in introducing bitcoin spot ETFs risks putting Asian investors at a disadvantage compared to their American counterparts.

In response, Hong Kong institutions are gearing up for ethereum spot ETFs to enhance competitiveness in the global cryptocurrency market.

Meanwhile, in the U.S., significant inflows into bitcoin spot ETFs have propelled their market cap to nearly $72 billion as of March 18.

Also read: BofA’s Merrill, Wells Fargo roll out spot Bitcoin ETFs to clients

Risks for Asian investors

The postponement of spot bitcoin ETFs in Hong Kong has raised concerns among industry participants, who worry about potential disadvantages for Asian investors.

Although applications for spot bitcoin ETFs have been accepted by Hong Kong regulators since December 2023, no products have been introduced as of yet.

Also read: Spot bitcoin ETFs attract nearly $2 billion in first 3 days of trading

Hashkey Exchange CEO Weng Xiaoqi, an Asia Web3 infrastructure developer, stressed the significance of the U.S. SEC’s approval of spot Bitcoin ETFs, cautioning that delayed U.S. market entry could heighten risks and costs for Asian investors if not promptly approved.

“The delayed launch of spot ETFs in half a year also means that It will be half a year later for U.S. capital to enter the market. At that time, it will face higher purchase costs and entry points and will have to bear the risk of being locked in by U.S. capital,” said Xiaoqi.

Also read: U.S. bitcoin ETF approval sees $4.6 billion trading volume on launch day

Hong Kong’s growing interest in crypto investments

Hong Kong displays a robust interest in crypto investments, evident in the rapid growth of bitcoin futures ETFs.

The Southern Bitcoin ETF and the Samsung Bitcoin ETF have both doubled in value since their launch, showcasing strong investor demand for crypto-linked financial instruments.


Sylvia Shen

Sylvia Shen is an editorial assistant at Blue Tech Wave specialising in Fintech and Blockchain. She graduated from the University of California, Davis. Send tips to s.shen@btw.media.

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