Three asset management firms have submitted their EFT applications to Hong Kong’s Securities and Futures Commission [SFC], Hong Kong’s local media, Nikkei Asia reported. Due to this development, Hong Kong will soon have its first Bitcoin and Ethereum exchange-traded funds.
Asset Management, Samsung Asset Management, and Mirae Asset Global Investments are competing assets under management firms in Hong Kong. Hong Kong-based bitcoin and ether futures will go live on the Chicago Mercantile Exchange after the Securities and Futures Commission approves, in the opinion of those familiar with these firms’ plans.
These moves by AUM firms in Hong Kong stems from Hong Kong’s ambition to call and position itself as a global crypto hub.
Corporate and retail customers in Hong Kong, China, and Taiwan seem unaffected, although there are chills from the FTX fallout in the industry. Instead, these customers have become more enthusiastic about investing in cryptocurrency ETFs.
This conclusion was reached by an annual Brown Brothers Harriman’s Asia ETF services survey. However, it is also a fact that the problems experienced in FTX and the constant change in the cryptocurrency market may affect investors’ opinions.
The first mutual fund is expected to be launched before the end of 2022 or in the first months of 2023, depending on the readiness of the firms that will issue the Bitcoin and Ethereum exchange-traded funds.