Hong Kong financial authorities have pioneered spot Bitcoin ETFs, which are now becoming an international issue

Bitcoin conquers Hong Kong

Hong Kong, on the initiative of the Securities and Futures Commission (SFC), the monetary authority of the autonomous Asian territory, has opened up Bitcoin spot ETFs by drawing up a series of criteria necessary for it to be introduced on the markets.

The SFC, together with the Hong Kong Monetary Authority (HKMA), which in fact represents the central bank of the territory, have already given the necessary coordinates in recent months to anyone wishing to engage in activities related to virtual assets, and the opening towards ETFs seems to confirm the attitude of government bodies.

In addition to “futures” ETFs, the SFC explicitly confirmed that it “is willing to accept applications for the authorization of other funds with exposure to virtual assets, including spot exchange-traded funds”.

The main requirements, according to the published circular, would be to "invest directly in the same tokens accessible to the public in Hong Kong", but also operate through platforms licensed by the SFC.

As regards custody, however, the trustee should delegate his function to a single responsible body, which must satisfy the criteria issued by the HKMA. Finally, funds that intend to have an exposure of more than 10% in cryptocurrencies will also have to undergo a consultation with the SFC.

Hong Kong new hub for cryptocurrencies

Hong Kong's politics, as repeatedly underlined here on TCG, differ significantly from the repressive policy of the Chinese central government, and this is not to be taken for granted, despite HK's relative independence from mainland China.

In fact, local authorities have shown great welcome to the sector, and indeed appear to want to exploit it to further strengthen their position in the Asian financial market.

The intention, looking backwards, seems to have been this since 2022, when the Hong Kong authorities issued the first political declarations in favor of the sector, which today have given rise to a new ad hoc regulatory regime.

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