Hong Kong authorities are further than willing to authorize spot bitcoin( BTC) exchange- traded finances( ETFs) in all their forms. Contrary to the position of the United States, where only one type of spot ETF could be approved.
Hong Kong’s Securities and Futures Commission( SFC) issued a indirect last week setting out the conditions by which it could authorize ETFs with exposure to bitcoin and other virtual means.
In the indirect, they clarify that spot bitcoin ETFs that reflect the status of “ in- kind creation ” and “ in- cash creation ” are authorized by the Hong Kong securities controller to be issued. In- kind creation( in the form of means) is the practice of delivering securities and cash rather of cash for the investment made. While in- cash creation( in cash) involves the practice of delivering only cash.
In the United States, the Securities and Exchange Commission( SEC) opposes the idea of a spot bitcoin ETF with the condition of in- kind creation and only opts for fiscal instruments that reflect the condition of cash.
So important so that now, in the last week of submitting operations to the SEC, the controller warns that any request to issue a spot bitcoin ETF that reflects in- kind creation will be rejected, as reported by CriptoNoticias a many days agone. With this move, Hong Kong chose a fully different route than the United States, opening itself to the possibility of having spot bitcoin ETFs of different types trading on the stock exchange. This, as part of this Asian region’s interest in arising as a global center for the cryptocurrency ecosystem.
As Hong Kong authorities see it, the virtual asset geography “ has evolved fleetly ” in recent times, to the point where there’s a “ wider range and lesser number of investment products that give exposure to cryptoassets, including ETFs. ” ”. Demand for the ultimate “ has also increased in Hong Kong, ” says the SFC, which explained that, since October 2022, it began accepting operations for ETFs with exposure to cryptoassets, although, at that time, only futures.
Now, since June of this time, the SFC’s licensing governance for cryptoasset trading platforms came into effect, allowing Hong Kong investors to “ directly access large- cap cryptoasset spot ETFs. ” This, “ subject to certain eligibility conditions and robust investor protection safeguards, ” according to the Hong Kong SFC.
Be that as it may, although Hong Kong and the US differ on the way to authorize spot bitcoin ETFs, the appearance of these fiscal products on the world’s main stock exchanges is further than imminent.
There are judges who project a significant rise in the price of bitcoin once spot ETFs are approved and begin trading, because it’ll allow billions of bones to enter the BTC request. still, the blessing of bitcoin spot ETFs in the United States, Hong Kong and other countries could protest off the BTC bull request, If it becomes a reality.