KEY POINTS
- Three companies have so far been approved to issue spot BTC and ETH ETFs
- A Bloomberg analyst noted that Harvest was "coming in hot" with the lowest fee so far
- An X user said that with the latest development, Asia will now show the world "how it's done"
Hong Kong's Securities and Futures Commission (SFC) has officially approved several spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) that will start trading on April 30, after it conditionally approved the offerings earlier this month.
China Asset Management (ChinaAMC) confirmed the full approval Wednesday, saying that its Bitcoin ETF "aims to provide investment results that, before fees and expenses, closely correspond to the performance of Bitcoin."
Harvest Global Investments Limited (HGI) also said it has received official authorization from the SFC for its spot Bitcoin and Ether ETFs.
"This development offers global investors a regulated, transparent, and efficient new path for investment, heralding a new era in the integration of digital assets with the traditional financial system," the company said in a press release.
The SFC's official website has also listed the joint Bosera-HashKey spot BTC and ETH ETFs as authorized offerings.
Crypto analysts and enthusiasts immediately picked up the development on Hong Kong's latest move, considering how the official approvals could drive major interest in Asian financial markets.
Bloomberg analyst James Seyffart expects a "potential fee war" in Hong Kong over the new offerings that are already making waves in the U.S. crypto circle. He noted that Harvest was "coming in hot" as it offers a full fee waiver with an after-waiver fee of 0.3%, the lowest so far. ChinaAMC charges 0.99%, while Bosera-HashKey has a 0.60% fee.
A potential fee war could break out in Hong Kong over these #Bitcoin & #Ethereum ETFs. Harvest coming in hot with a full fee waiver and the lowest fee at 0.3% after waiver. Tables are from my colleagues @RebeccaSin_SK & @thetrinianalyst! pic.twitter.com/zI1XobrTwZ
— James Seyffart (@JSeyff) April 24, 2024
Enthusiast Toby Cunningham noted that he expects an "exodus from the West to the East" to have a major impact on the crypto space.
The exodus from the West to the East will rock the world. We have front row seats for this show 🍿
— Toby Cunningham (@sircryptotips) April 24, 2024
Vietnamese crypto community Trade Coin VN hailed the "impressive milestone," saying it hopes more countries will also be inspired to approve spot Bitcoin ETFs. One user said "Asia will show us how it's done."
That's an impressive milestone. I hope this will motivate more countries to approve the Spot Bitcoin ETF.
— TradeCoinVN (@TCVNcommunity) April 24, 2024
I can't imagine them fighting to buy every single Bitcoin in this market!
Most crypto users on X celebrated the news, saying more interest on Bitcoin around the world will boost adoption across the region. Others predict Hong Kong crypto users will "absorb every BTC in the market."
This could be a game-changer for the region.
— Wick Capital (@WickCapitall) April 24, 2024
They will absorb every $BTC in the market. Shit Grayscale finally will run out of it and we can go only up.
— 😑 CryptOrkester 🙏 (@CryptOrkester) April 24, 2024
The optimism in the crypto community over Hong Kong's decision comes as the Bitcoin circle watches how the world's largest cryptocurrency by market cap moves post-halving since mining rewards have been split in half, which means the circulation of new BTC will ultimately be reduced.
Bitcoin climbed to $67,000 on Tuesday, but it has since retreated to $64,000, the same price it stuck to throughout the halving event.
