By George Ward
The popularity of cryptocurrency exchange-traded funds (ETFs) among retail investors will be around for a while. Accordingly, three Hong Kong-based asset management companies have applied for a crypto ETF from the Chicago Mercantile Exchange.
According to reports, Mirae Asset Global Investments, Samsung Asset Management, and CSOP Asset Management are the three firms to have filed for ETFs with Singapore’s Securities and Futures Commission (SFC).
In addition, the three companies applied for the BTC and ETH futures ETF, as revealed by the insider source familiar with the matter. The source added that some fund managers had received feedback about their applications from the securities regulator.
Hong Kong is currently racing to launch its first-ever ETF following the authority’s drive to reposition the nation as a global crypto hub. The SFC also announced that it would allow retail investors to trade on the crypto-based ETFs.
Despite the ongoing FTX contagion that has disrupted investments in the digital asset industry, Hong Kong is bullish on the prospect of crypto assets in the global financial sector.
Until 2021, the country was the leading crypto hub. However, the regulators played a role in the sector’s decline.
It introduced a licensing process restricting crypto exchanges and only approving “professional investors” with portfolios of at least $1.03 million.
Can Hong Kong and Singapore Revive Asia’s Crypto Dominance?
Hong Kong and Singapore are two of the world’s global financial hubs, with both countries setting the pace for others to follow.
Meanwhile, the exciting thing about the two parties is that both can work together and complement each other to attract the best to their crypto markets and position Asia as a global superpower.
Hong Kong was the leading crypto hub in the world before the aggressive move by the regulator halted its progress in 2019. Back then, the city was home to the now-collapsed FTX, BitMex, and other top crypto exchanges.
Therefore, the government’s renewed drive is a call made possible by the community of crypto enthusiasts. For its part, Singapore has benefited from the massive influx of crypto firms from mainland China after the Chinese authorities’ blanket ban on the trade in digital assets.
Most Chinese crypto entrepreneurs found a base in the country and have since made their mark in the financial hub. Hong Kong and Singapore are currently developing their regulatory requirements with a clear focus on crypto assets.
Meanwhile, the two countries are tightening the rules on speculative trade as the FTX drama continues to unfold. However, a collaboration between the two powerhouses could see Asia return to the top spot as the region with the most crypto-related investments.
The Asian crypto market still has a large percentage of their population yet to access financial services. Thus, the crypto space has the answer to the government’s financial inclusion drive.
It will be exciting to see how the two countries will work together to put Asia ahead of other regions in crypto adoption.