Hong Kong Sets Sights on Ethereum ETFs to Strengthen Global Crypto Market Presence

March 13, 2024

By Sharan Kaur Phillora

To boost its standing in the international cryptocurrency market, financial institutions in Hong Kong are gearing up to launch spot Exchange Traded Funds (ETFs) for Ethereum. This initiative follows the successful introduction of Bitcoin spot ETFs in the United States, which has garnered significant attention and investment inflows.

Here’s what we know:

Local media reports suggest that the launch of Ethereum spot ETFs by Hong Kong-based financial institutions aims to leapfrog the United States, cementing Hong Kong’s position as a key player in the global crypto landscape. The cumulative net inflow of Bitcoin spot ETFs in the U.S. recently exceeded $2.24 billion, driving Bitcoin prices to record highs and highlighting the burgeoning interest in cryptocurrency investment products.

Data from Coinglass reveals that the total assets under management of Bitcoin ETFs have reached $55.34 billion, with leading funds such as GBTC, IBIT, and FBTC managing substantial portfolios. This surge in investment marks a 40% increase from mid-January figures.

In light of the booming Bitcoin investment market, two Bitcoin futures ETFs in Hong Kong have also seen remarkable growth. The Southern Bitcoin ETF and the Samsung Bitcoin ETF have experienced significant increases in their listing prices, highlighting the growing appetite for cryptocurrency-related investment products.

Amidst this momentum, attention is shifting towards developing Bitcoin spot ETF offerings in Hong Kong. Weng Xiaoqi, CEO of HashKey Exchange and COO of HashKey Group, emphasized the importance of providing Asian investors with locally accessible spot ETF products currently dominated by European and American institutions.

Hong Kong’s role as a global financial hub positions it to attract significant investments once Bitcoin spot ETF trading commences. While the Securities and Futures Commission is reviewing the specifics of the first batch of Bitcoin spot ETF listings in Hong Kong, the anticipation for Ethereum spot ETFs is particularly high.

Amidst these developments, Hong Kong is also preparing to host the Consensus blockchain and Web3 event in February 2025. This marks the first time in five years that the influential conference, traditionally held in the United States, will be staged outside of its home country. It is expected to attract an expected 8,000 participants worldwide.

The Hong Kong Special Administrative Region government and the Hong Kong Tourism Board (HKTB) have provided comprehensive support to CoinDesk, the event organizer. This highlights the city’s proactive approach to embracing and fostering the growth of the blockchain and Web3 sectors. Hosting such a prestigious event gives Hong Kong a platform for international exchange and collaboration in the rapidly evolving digital landscape.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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