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- OKLink feels that Hong Kong has the potential to launch more L1 ETFs in the future.
- Hong Kong focuses on wide spread of crypto assets pen_spark.
- PoS protocol is considered a positive factor.
Following the recent launch of Spot ETF in Hong Kong, OkLink, a global leader in blockchain data services, is hopeful of regulatory approval of similar products for other major blockchain protocols in the future. expressed an optimistic view. The company believes the move could increase Hong Kong's attractiveness as a hub for crypto innovation compared to other regions with strict regulations.
On April 30, Hong Kong became one of the first major financial centers to approve an Ethereum ETF and both ETFs, months after the US launched its first Bitcoin ETF. OKLink acknowledged that the initial trading volume of the Ethereum ETF was lower than expected, but suggested that an early launch would provide a competitive advantage to Hong Kong's crypto market.
OKLINK, the OKX organization in Hong Kong, has announced that more L1 tokens may be accepted as ETFs in the future, given that Hong Kong has approved an application for a spot ETF for Ethereum on a POS basis. He pointed out that this would significantly increase the attractiveness of Hong Kong. various…
— Wu Blockchain (@WuBlockchain) May 18, 2024
Part of this optimism stems from the realization that the SEC remains hesitant to approve Ethereum ETFs. OKLink predicts that investments in Hong Kong ETFs could surge once Ethereum prices recover from the current decline.
With the special approval of the Ethereum ETF based on the Proof of Stake (PoS) consensus mechanism, OKLink believes that similar products for other PoS protocols may emerge. The company has identified established public blockchains like Solana as potential beneficiaries of this trend, further strengthening Hong Kong's attractiveness for a variety of his Web3 projects.
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However, the current market share of Hong Kong Ethereum ETF remains modest, accounting for only 15.11% of the region's ETF market, with assets under management of approximately HK$327 million. OKLink says this is due to widespread market weakness and the recent “Cancun” upgrade of the Ethereum protocol failing to provide a significant boost to layer 2 scaling solutions as many expected. I think there is.
While the initial performance of the Hong Kong Ethereum ETF has been weak, the regulatory approval itself has broader significance. This shows a willingness to embrace innovation within a controlled framework and could pave the way for a more diverse and competitive environment for crypto investments in Asia. This approach is likely to be closely monitored by other regional financial centers seeking to balance regulatory oversight with fostering growth in the digital asset industry.
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