Bitcoin

Hey there! Just a quick note to let you know that this article is brought to you by Sygnum. Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage. They empower professional and institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust. The team enables this through our institutional-grade security, expert personal service, and portfolio of regulated digital asset banking, asset management, tokenization, and B2B services.In Switzerland, Sygnum holds a banking license. In Singapore, it has the Capital Markets Services and Major Payment Institution licenses. The group is also regulated in the established global financial hubs of Abu Dhabi and Luxembourg.. So, please sit back, relax, and enjoy today&#39;s news, knowing that it&#39;s made possible by our friends at Sygnum.<img src="https://media.licdn.com/dms/image/D5612AQGYxDSXIF-SVg/article-inline_image-shrink_1500_2232/0/1712832094775?e&#61;1718236800&amp;v&#61;beta&amp;t&#61;935PTyAp0PZlTc-5svUe6mpLbT71xhRtZYnpWJ26uHY" />Hong Kong&#39;s first <a href="https://www.blockhead.co/tag/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin ETF</a> could grace the scene as early as next week but what does this mean for the rest of the industry? Especially regional rival, Singapore?According to <a href="https://www.reuters.com/business/finance/hong-kong-set-approve-its-first-spot-bitcoin-etfs-april-sources-say-2024-04-10/?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">Reuters</a>, spot Bitcoin ETF approvals in Hong Kong are &#34;likely&#34; to be announced next week. If approved, <a href="https://www.blockhead.co/tag/hong-kong" rel="noopener noreferrer nofollow">Hong Kong</a> would be the first city in Asia to greenlight the products, following the US SEC&#39;s successful approval in January this year.<h3 id="regional-race">Regional Race</h3>Last month, <a href="https://www.blockhead.co/tag/thailand" rel="noopener noreferrer nofollow">Thailand&#39;s</a> Securities and Exchange Commission greenlit Bitcoin ETFs but only for institutional investors and ultra-high-net-worth individuals.Regulators in Hong Kong have reportedly sped up the process of approval, which has been highly anticipated by the region. Just this week, it was reported that two China-based asset management firms have submitted applications for spot Bitcoin ETFs via their Hong Kong subsidiaries.Harvest Fund Management and Southern Fund have subsidiaries located in Hong Kong and manage assets worth over $200 billion. Both firms have <a href="https://www.globaltimes.cn/page/202404/1310180.shtml?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">reportedly</a> submitted applications to the Hong Kong Securities and Futures Commission (SFC).<h3 id="why-it-matters">Why it Matters</h3>A green light for Bitcoin ETFs in Hong Kong offers new avenues for Chinese investors to distribute their wealth outside of China. Earlier this week, gold-linked ETFs in China were <a href="https://www.bloomberg.com/news/articles/2024-04-08/chinese-fund-house-halts-gold-linked-etf-after-premium-surge?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">halted</a> after a price premium reached 30% following a surge in demand.&#34;It&#39;s not just for the access to hedge funds and family offices based in the region; it&#39;s also because of the access it gives to mainland investors,&#34; <a href="https://www.coindesk.com/markets/2024/04/10/hong-kongs-incoming-spot-bitcoin-etfs-could-be-big-deal-heres-what-analysts-say/?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">explained</a> macro analyst Noelle Acheson.The analyst added that many Chinese investors are looking to diversify away from American assets too. &#34;Chinese authorities most likely realize that a significant portion of their citizens will be diversifying into hard assets whether approved or not, and would probably prefer that they be in assets not related to the U.S. economy,&#34; Acheson said.Adrian Wang, CEO of Metalpha, added, &#34;The significance of Hong Kong ETFs is far-reaching as it could bring in fresh global investment as well as pushing crypto adoption to a new height.&#34;Hong Kong first approved crypto futures ETFs in 2022. The CSOP Bitcoin Futures ETF (3066.HK) has seen its AUM increase by a multiple of seven since September last year to $120 million.The HK SFC will assumedly undertake rigorous due diligence on any proposed Bitcoin ETF, the growing digital asset ecosystem in Hong Kong provides several locally licensed entities that can provide appropriate custody and trading services for this emerging asset class.Not only will the technology of ETF itself offer confidence, but Hong Kong&#39;s advanced regulatory framework also offers a rare opportunity for global investors who are looking to invest or build crypto companies here in Asia.<h3 id="your-turn-singapore">Your Turn, Singapore</h3>The battle of the regional crypto hub crown is continuing to intensify between Hong Kong and Singapore. Hong Kong opened the floodgates for retail investment last year but was forced to bite its tongue as local scandals such as JPEX left the industry with a sour taste.Singapore, on the other hand, has retained its cautious and conservative approach to the industry. The Payment Services (Amendment) Bill passed in January 2021, which expands the scope of payment services the Monetary Authority of Singapore (<a href="https://www.blockhead.co/tag/mas/" rel="noopener noreferrer nofollow">MAS</a>) will regulate, went live earlier this month.The amendment to the Payment Services Act brings three new activities under its purview: crypto custody services, facilitating the transmission or exchange of crypto, and facilitating cross-border money transfer.Singapore has recently granted a series of licenses to crypto firms including <a href="https://www.blockhead.co/tag/gsr/" rel="noopener noreferrer nofollow">GSR</a>, <a href="https://www.blockhead.co/tag/okx/" rel="noopener noreferrer nofollow">OKX</a>, and <a href="https://www.blockhead.co/tag/hashkey/" rel="noopener noreferrer nofollow">HashKey</a>, but has not entertained the idea of greenlighting Bitcoin ETFs.<h3 id="kiasu-etf">Kiasu ETF</h3>Following the US SEC&#39;s approval of Bitcoin ETFs, MAS was quick to <a href="https://www.channelnewsasia.com/business/bitcoin-etfs-not-approved-retail-investors-singapore-us-sec-approval-mas-4053371?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">reiterate</a> to the Little Red Dot that &#34;spot Bitcoin ETFs are not approved by MAS for offer to retail investors&#34; and has not shed any light on it since.MAS&#39;s reserved approach to crypto has paid off thus far but Hong Kong might be stealing the limelight. Recently, CoinDesk announced that its flagship event, Consensus, will be <a href="https://www.coindesk.com/business/2024/03/07/coindesk-brings-consensus-to-hong-kong/?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">held in Hong Kong</a>, bypassing Singapore as an option.Additionally, even Singapore firms such as <a href="https://www.blockhead.co/tag/digift/" rel="noopener noreferrer nofollow">DigiFT</a> are expanding to Hong Kong to strengthen its presence.If Hong Kong approves Bitcoin ETFs next week, there will be added pressure on Singapore to at least consider greenlighting the product. Kiasu pressure is real.

Hong Kong's First Bitcoin ETF Next Week... Wen SG?

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