Hong Kong Urged to Expedite Bitcoin Spot ETF Approvals Following SEC's Move

In the wake of the U.S. Securities and Exchange Commission's (SEC) approval of Bitcoin Spot ETFs, Hong Kong Legislative Council Member Johnny Ng advocates for accelerated approval of local Bitcoin Spot ETFs in Hong Kong. Ng highlights the readiness of the Securities & Futures Commission (SFC) to accept applications for Bitcoin ETFs and emphasizes the need for Hong Kong to capitalize on the global opportunity in the virtual assets space.

Key Points:

1. Regulatory FOMO: Johnny Ng urges Hong Kong to expedite the approval of Bitcoin Spot ETFs, citing the rapid development and high competition in the virtual assets realm. He sees this as an opportunity for Hong Kong to establish itself as a global center for virtual assets.
2. SFC's Readiness: The Securities & Futures Commission had previously expressed its readiness to accept applications for Bitcoin ETFs, and Ng hopes that Hong Kong can implement relevant policies and products promptly.
3. Financial Scams Awareness: Ng emphasizes the need to strengthen popular education on virtual assets to enhance public awareness and mitigate scams. Hong Kong witnessed significant financial scams with the collapse of unlicensed crypto exchanges JPEX and Hounax in the previous year.
4. Financial Services Firms Preparing Applications: Livio Weng, COO of HashKey Group, reveals that 10 financial services firms are currently preparing applications for a Bitcoin Spot ETF listing in Hong Kong. The SFC provided pathways for the approval of such applications in December 2023.
5. Existing Bitcoin Futures ETFs: Hong Kong has already seen the presence of Bitcoin Futures ETFs, including one issued by Samsung, on its exchanges for some time.

With the SEC's approval of Bitcoin Spot ETFs setting a precedent, Hong Kong faces pressure to swiftly implement similar measures. The push for education on virtual assets aligns with efforts to safeguard investors in the wake of recent financial scams. As financial services firms prepare applications, the potential approval of Bitcoin Spot ETFs could position Hong Kong as a significant player in the global virtual assets market.