As Hong Kong seeks to become a burgeoning crypto hub in Asia, market markers in the crypto industry are anticipating more companies to expand to the region. With days to 2024, when the US Securities and Exchange Commission (SEC) is expected to provide feedback on the spot Bitcoin exchange-traded funds (ETFs). If the SEC approve the Bitcoin ETFs the industrial leaders anticipate that Hong Kong will be among the first countries to welcome the ETFs.
In an exclusive interview with the chief executive of Animoca Brands, Yat Siu revealed that the pro-crypto move in Hong Kong will support the adoption of spot Bitcoin ETFs.
Significance of Spot Bitcoin ETF
Reflecting on a recent announcement from the Securities and Futures Commission (SFC), the executive was pleased to state that Hong Kong seeks to open the accessibility of digital assets. Siu admitted that the advent of the Bitcoin ETF was noncontroversial.
The executive envisages the Hong Kong government replicating the US move to approve the pending Bitcoin ETFs. He admitted that the SEC has worked with the asset managers for the past few months to ensure the Bitcoin ETF application meets the compliance requirements.
Siu observed that the Hong Kong regulators have received multiple applications for spot Bitcoin ETF from critical industrial players in the financial sector. With the exciting growth of the crypto ecosystem, the Hong Kong government seeks to tap the benefits of blockchain and Web3 technologies.
The desire to be one of the front runners for crypto adoption has forced Asian countries to implement friendly policies for digital assets. In a recent report, the government requested leading financial institutions and banks to work with them in regulating the vibrant crypto sector.
Apart from this, the regulators are enforcing new rules that strengthen the use of crypto assets. In November, the chief executive of SFC, Julia Leung, stated that the regulators are leveraging advanced technologies to assess the spot Bitcoin ETFs.
Elsewhere the Head of sales of APAC at Blockdaemon Glenn Woo expressed his bullish stance on Hong Kong’s pursuit to become a crypto-friendly country.
Even though traditional asset managers have unsolved issues, Woo believes that Hong Kong residents are eagerly waiting for the approval of the spot crypto ETFs. He anticipates that immediately after the US Securities and Exchange Commission approves the ETFs regulators in Hong Kong will follow suit and support the listing of crypto ETF products.
Hong Kong Seeks to Become Leading Crypto Hub in Asia
Furthermore, the executive noted that despite the delays in approving the ETF, there is a growing demand for spot Bitcoin ETFs in Hong Kong. Woo anticipates that with the broad usability of crypto assets in Asian countries, potential ETF issuers will be required to join forces with conventional financial institutions and crypto firms.
Woo believes that issuing Bitcoin ETFs will require critical financial players to collaborate. He encouraged the traditional custodial firms, crypto custody platforms, and digital wallet service providers to join forces to support the spot Bitcoin ETF in attaining its core objectives.
In particular, the crypto spot ETF’s main objective is actively supporting banks and financial institutions participating in the crypto sector. Also, the dynamism of the financial industry has challenged asset managers to improve the accessibility of crypto assets.
Industrial Leaders Predict Crypto Development to Shift to the East
According to WOo, the spot crypto ETF offers endless opportunities to investors. He underlined the positive implications of the spot ETF to the digital sector, including the liquidity aspect.
Woo believes that approving the spot Bitcoin ETF will offer asset managers and customers an avenue to increase their liquidities. Even though the global regulators have focused on the spot Bitcoin ETF, Woo predicts that a crypto hub will thrive in the East starting next year.
He recognized remarkable efforts made by the industrial players from the West towards developing the crypto sector. However, with the growing popularity of digital assets, Woo anticipates active participation from crypto leaders in South Korea, Hong Kong, and Japan.
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