- US spot Bitcoin ETFs have been a resounding success to date.
- Hong Kong debuted its spot ETF products on April 30.
- Australia is looking to capitalize on BTC ETF popularity.
The launch of spot Bitcoin ETFs in the US has been an unqualified success story for the crypto industry. BlackRock’s iShare Bitcoin Trust (IBIT) amassed over $10 billion in assets faster than any other ETF debut in history. While the slew of ETF funds has delivered an average performance of 43% so far. Given the positive US reception, other jurisdictions seek to replicate this success.
Australia is actively considering spot Bitcoin ETF applications to trade on the ASX exchange. Meanwhile, Hong Kong debuted its suite of spot ETF offerings on Tuesday to much fanfare and expectation.
Bitcoin, Ethereum ETFs Go Live in HK
Hong Kong debuted spot crypto ETF products on Tuesday, marking a watershed moment for cryptocurrency adoption in Asia’s financial markets. Three major Chinese asset managers, China Asset Management, Bosera Asset Management, and Harvest Global Investments, launched six cryptocurrency ETFs on the Hong Kong Stock Exchange.
Sponsored
Notably, each asset manager launched an Ethereum ETF alongside a Bitcoin offering. The inclusion of Ether underscores how the second-largest cryptocurrency is gaining legitimacy alongside Bitcoin in the eyes of Hong Kong regulators.
Expectations are high that the Hong Kong offerings can replicate the success seen in the US market. Zhu Haokang, the head of digital asset management and family wealth at China Asset Management, expressed confidence in surpassing US BTC ETF inflows on the first day of trading.
Samson Mow, the CEO of Jan3, agreed with the overall significance of Hong Kong crypto ETFs simply because “There is really nothing else for Chinese investors to put their money into at this time.” But Mow doubts whether the early inflows can match the levels seen in the US market.
Sponsored
Following Hong Kong’s crypto ETF debut, Australia looks poised to accelerate the global crypto ETF takeover.
Australia Signals ETF Interest
According to Bloomberg, Australia is set to become the next major market to embrace spot Bitcoin ETFs. The country’s leading exchange, the Australian Securities Exchange (ASX,) is expected to approve the first such funds for listing before the end of 2024. Several providers, including VanEck, BetaShares, and DigitalX, have submitted their applications for approval.
One of the key application stumbling blocks is the custody solutions proposed for holding the underlying Bitcoin assets. The ASX is keen to ensure sufficient safeguards and processes before giving the green light.
Previous attempts to list spot Bitcoin ETFs in Australia on the smaller CBOE exchange initially failed to generate much investor interest. However, the overwhelming success and buzz surrounding the recent US and Hong Kong launches have reignited optimism in the Australian market.
On the Flipside
- Spot BTC ETFs existed before the US launch, including the Jacobi FT Wilshire Bitcoin ETF listed on Euronext.
- SEC chair Gary Gensler stated that ETF approvals do not constitute an endorsement of Bitcoin by the agency.
- Bear markets may see an acceleration of outflows from crypto ETF products.
Why This Matters
Bitcoin is making significant inroads into mainstream finance as more jurisdictions launch spot crypto ETF products.
SEC signals uncertainty around US spot Ethereum ETF approval:
Ethereum Dips as SEC Meetings Slim ETH ETF Approval Chances
Is the crypto bull run over before it’s begun?
Crypto Bull Run Over? BTC Weekly Close Stirs Concern
