At the beginning of the week, the Bitcoin and Ethereum Spot ETF Conditionally approved in Hong Kong. Alongside this news, digital asset platform OSL announced that it will become a “sub-custodian partner” of both. China Asset ManagementAlso known as ChinaAMC (HK) Harvest global investment ETF.
Looking forward, OSL's CEO believes these ETFs could spark a wave of “more progressive” regulation in China, with ripple effects across the region.
“[It] Patrick Pang, OSL's chairman and CEO, said the deal is likely to set a precedent for other financial markets in Asia. Decryption. “For China, this development in Hong Kong solidifies Hong Kong’s position as a unique financial center for innovation, and could impact future regulatory considerations and market openness to cryptocurrencies. , which could lead to more progressive policies in line with global standards.”
China has a long and rocky history with virtual currencies.effectively ban virtual currencies More than once.
“Currently, there are strict regulations on virtual currency trading, and the operation of virtual currency exchanges within the territory is expressly prohibited,” said Head of Digital Assets and Family Office Business at China AMC (Hong Kong). said Thomas Zhu. Decryption.
However, since Hong Kong has the status of a special administrative region administered by China, China's “experimental site”– Its financial decisions may set the stage for future moves in mainland China.
Looking to the broader continent, both companies see spot ETF approval as a catalyst for regulatory evolution.
“This could prompt regulators to accelerate their own frameworks to accommodate such products, which could lead to broader acceptance and deeper integration of cryptocurrencies into the Asian financial landscape. “It has the potential to set the stage for a new era of digital asset trading,” Zhu said. And it's an investment in the region. ”
However, the following countries are friendly to cryptocurrencies: Japan, South Koreaand Singapore Mr. Zhu suggested that he may be the first to be affected.
of US Approved Spot Bitcoin ETF In January-11 years after first application A US Bitcoin ETF has been filed. This is in stark contrast to the Hong Kong process, which OSL claims took only four months.
“The path for spot crypto ETF products has been much more difficult in the United States, where the legal framework and regulatory landscape is highly fragmented and subject to sometimes highly polarized political cycles. ” Pan said Decryption. “The Hong Kong framework has once again proven its ability to rapidly mobilize innovation while ensuring strong investor protection, setting a benchmark for crypto-related financial products in Asia.”
Nevertheless, the US still thoroughly defeated Hong Kong. This means Hong Kong regulators and potential ETF issuers can study the impact spot crypto funds may have on the market.Key Lesson: The Importance of ETFs drive demand.Companies we spoke to Decryption I think it will be no different this time.
“We expect a similar increase in Hong Kong,” Pan said. “These ETFs have structured and familiar investment mechanisms that resemble traditional financial structures, which could increase education and adoption among local investors. , the Hong Kong market has the potential for significant growth leveraging deep wells of enthusiasm and capital.”
and population of hong kong part of american size, the impact on the broader cryptocurrency ecosystem may be less pronounced than January's spot ETF approval. But anything the United States can muster may be dwarfed by the ripple effects it could have on China and other Asian countries.
Editing: Stacey Elliott and Andrew Hayward
