Hong Kong's Bitcoin ETF: A Step Towards Regaining Its Financial Hub Status?

Hong Kong's Bitcoin ETF: A Step Towards Regaining Its Financial Hub Status?

Hong Kong's launch of a Bitcoin spot exchange-traded fund (ETF) will be a major test of whether it can reclaim its status as a modern financial hub, Bloomberg said. The city has spent more than a year vying with Singapore, Dubai, and others to re-establish itself as a crypto-friendly jurisdiction. It now looks set to compete with, or be measured against, the US market, where there are already several Bitcoin spot ETFs. One potential handicap, industry insiders, and outsiders said, is that Hong Kong does not have a 'BlackRock effect.' But unlike in the US, it will allow the ETF to be settled in both physical Bitcoin and cash. This is seen as a potential attraction to crypto traders, market makers, and digital asset exchanges. For now, it is too early to tell whether Hong Kong's Bitcoin spot ETF will be successful. Previously on 23 April 2024, "Hong Kong’s launch of a Bitcoin spot exchange-traded fund (ETF) will be a major test of whether it can reclaim its status as a modern financial hub, Bloomberg said. The media outlet said that “the city has spent more than a year vying with Singapore, Dubai and others to re-establish itself as a crypto-friendly jurisdiction. It now looks set to compete with, or be measured against, the US market, where there are already several Bitcoin spot ETFs. One potential handicap, industry insiders and outsiders said, is that Hong Kong does not have a ‘BlackRock effect.’ But unlike in the US, it will allow the ETF to be settled in both physical Bitcoin and cash. This is seen as a potential attraction to crypto traders, market makers and digital asset exchanges.  For now, it is too early to tell whether Hong Kong’s Bitcoin spot ETF will be successful