Behind the Hong Kong Stock Exchange's Launch of a Bitcoin ETF (AI Translation)
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文｜财新周刊 王小青（发自香港）
By Caixin Weekly's Wang Xiaoqing (from Hong Kong)
在2024年4月中国香港会展中心举办的“2024香港Web3嘉年华”上，华尔街明星基金经理、方舟投资管理公司的CEO“木头姐”凯茜·伍德（Cathie Wood），喊出了2030年比特币（BTC）每枚价格攀至150万美元的极乐观预测。
At the "2024 Hong Kong Web3 Carnival" held at the Hong Kong Convention and Exhibition Center in April 2024, Cathie Wood, the star fund manager and CEO of Ark Investment Management, known as "Wood Sister," made an extremely optimistic prediction that the price of Bitcoin (BTC) would climb to $1.5 million per coin by 2030.
乘着比特币升破7万美元新高的本轮牛市东风，3月中旬开始，中国香港紧锣密鼓地展开了比特币、以太币（ETH）现货ETF的筹备和审批工作。相关人员加班加点，目标是4月底，亚洲首批虚拟资产现货ETF能在香港交易所挂牌。
Riding the bullish wave as Bitcoin broke through a new high of $70,000, Hong Kong, China, began intensively preparing and approving Bitcoin and Ethereum (ETH) spot ETFs in mid-March. The staff worked overtime with the goal of listing Asia's first batch of virtual asset spot ETFs on the Hong Kong Stock Exchange by the end of April.
美国证券交易委员会（SEC）于2024年1月10日核准11只比特币现货ETF上市，是整个虚拟资产行业的里程碑事件。贝莱德（BlackRock）、景顺（Invesco）、富达（Fidelity）、富兰克林邓普顿（Franklin Templeton）等大型传统金融机构全部入场，虚拟资产被主流金融机构接受的趋势已不可阻挡。
On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved the listing of 11 Bitcoin spot ETFs, marking a milestone event for the entire virtual asset industry. Major traditional financial institutions such as BlackRock, Invesco, Fidelity Investments, and Franklin Templeton have all entered the market, underscoring an unstoppable trend towards the acceptance of virtual assets by mainstream financial institutions.
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- Cathie Wood, CEO of Ark Investment Management, predicted at the "2024 Hong Kong Web3 Carnival" that Bitcoin could reach $1.5 million per coin by 2030. Concurrently, Hong Kong is preparing to launch Asia's first spot ETFs for Bitcoin and Ethereum by the end of April 2024.
- The U.S. SEC approved 11 Bitcoin spot ETFs on January 10, 2024, marking a milestone in virtual asset acceptance by mainstream financial institutions like BlackRock and Fidelity. In contrast, Hong Kong regulators proactively issued guidelines in December 2023 to facilitate the trading of virtual asset spot ETFs by retail investors.
- On April 30, 2024, three Bitcoin and three Ethereum spot ETFs were listed in Hong Kong, introduced by subsidiaries of Chinese public funds. These ETFs are available for retail investors and mark a significant development in Hong Kong's virtual assets market.
At the "2024 Hong Kong Web3 Carnival," Cathie Wood predicted Bitcoin's rise to $1.5 million by 2030, reflecting optimism as Bitcoin reached new highs and Hong Kong prepared to launch Asia's first virtual asset spot ETFs [para. 1]. The U.S. SEC had already approved 11 Bitcoin spot ETFs in January 2024, signaling a significant shift towards mainstream acceptance of virtual assets [para. 2]. In contrast, Hong Kong proactively embraced this trend with regulations allowing retail transactions in virtual assets [para. 3].
Hong Kong has been developing its regulatory framework for virtual assets since October 2022, including licensing for trading platforms and oversight on OTC trading following major fraud incidents. This regulatory clarity is attracting traditional financial institutions to the virtual asset market [para. 4][para. 5]. On April 30, 2024, six Bitcoin and Ethereum spot ETFs were listed in Hong Kong, marking a milestone as Asia's first such products open to retail investors [para. 6].
Despite a robust start with subscriptions estimated at $300 million, daily trading volumes were significantly lower than those in the U.S., highlighting constraints due to the smaller market size in Hong Kong [para. 7]. However, innovations like physical (in-kind) redemption models for these ETFs differentiate Hong Kong’s offerings from those in the U.S., potentially broadening investor appeal [para. 8].
The regulatory landscape in Hong Kong continues to evolve with cross-departmental oversight involving multiple government bodies enhancing the regulation of virtual assets post-2022’s market downturn. Recent public consultations aim to establish a licensing system for OTC trading venues as part of broader efforts to integrate and regulate digital finance securely [para. 9].
Hong Kong’s proactive stance extends into exploring Central Bank Digital Currencies (CBDCs) with several projects underway aiming at both wholesale and retail applications. These initiatives place Hong Kong at the forefront of global financial innovation in digital currencies [para. 10].
The potential next big opportunity lies in Real World Assets (RWA) tokenization. Initiatives like issuing tokenized green bonds and structured notes indicate significant progress. Tokenization could redefine asset liquidity and accessibility, aligning with global trends towards digital transformation in finance [para. 11].
Overall, while some industry players are shifting focus away from highly regulated environments like Hong Kong towards more lenient regions like Dubai, others see value in adhering to stringent regulations that could facilitate safer and more robust growth of digital finance ecosystems within compliant frameworks [para. 12].
- ARK Investment Management
方舟投资管理公司 - ARK Investment Management, led by CEO Cathie Wood, known as "Wood Sister," is a prominent investment firm. Cathie Wood made an optimistic prediction at the "2024 Hong Kong Web3 Carnival," forecasting that Bitcoin's price could reach $1.5 million per coin by 2030. ARK is recognized for its focus on innovative sectors like cryptocurrencies, technology, and biotechnology.
- BlackRock
贝莱德 - BlackRock, along with other major traditional financial institutions such as Invesco, Fidelity, and Franklin Templeton, entered the virtual asset industry following the SEC's approval of 11 Bitcoin spot ETFs in January 2024. This move signifies the increasing acceptance of virtual assets by mainstream financial institutions.
- Invesco
景顺 - Invesco, a large traditional financial institution, has entered the virtual asset industry following the U.S. SEC's approval of 11 Bitcoin spot ETFs on January 10, 2024. This move is part of a broader trend where mainstream financial institutions are increasingly accepting virtual assets. Invesco's participation highlights its adaptation to evolving market demands and innovations in the financial sector.
- Fidelity Investments
富达 - Fidelity Investments is mentioned as one of the large traditional financial institutions that entered the virtual asset market following the U.S. SEC's approval of Bitcoin spot ETFs in January 2024. This move signifies mainstream financial acceptance of virtual assets, highlighting a trend where established financial entities are increasingly engaging with cryptocurrency investments and related products.
- Franklin Templeton
富兰克林邓普顿 - Franklin Templeton is mentioned as one of the large traditional financial institutions that entered the virtual asset industry following the U.S. SEC's approval of Bitcoin spot ETFs in January 2024. This move signifies mainstream financial acceptance of virtual assets, highlighting a trend where established financial entities are increasingly engaging with the cryptocurrency sector.
- ChinaAMC (Hong Kong)
华夏基金（香港） - ChinaAMC (Hong Kong) is one of the Chinese asset management firms actively participating in the virtual assets market in Hong Kong. It has launched Bitcoin and Ethereum spot ETFs under its subsidiary, contributing to the first batch of such products listed on the Hong Kong Stock Exchange. These developments are part of a broader trend where traditional financial institutions are increasingly engaging with virtual assets.
- Harvest Global Investments
嘉实国际 - Harvest Global Investments is one of the Chinese asset management firms actively participating in Hong Kong's virtual assets market. It is involved through its subsidiary in Hong Kong, which is among the first to issue virtual asset spot ETFs there. This move aligns with the broader trend of traditional financial institutions engaging with digital assets, leveraging regulatory advancements in Hong Kong to explore new financial technologies and investment products.
- Bosera International
博时国际 - Bosera International, one of the Chinese asset management firms mentioned in the article, is actively involved in the virtual assets market in Hong Kong. It was among the first to issue cryptocurrency spot ETFs in Hong Kong, specifically launching products related to Bitcoin and Ethereum. These developments are part of Hong Kong's broader initiative to establish itself as a hub for virtual assets.
- BOCI
中银国际 - BOCI, or Bank of China International, is highlighted in the article for its involvement in the development of virtual assets in Hong Kong. Specifically, BOCI successfully issued a 200 million RMB fully digitalized structured note, becoming the first Chinese financial institution to issue blockchain digital securities in Hong Kong. This issuance was established under both Hong Kong and Swiss law.
- GF Securities (Hong Kong)
广发证券（香港） - GF Securities (Hong Kong) successfully issued Hong Kong's first tokenized short-term financing bills in January 2024. This issuance followed the regulatory guidelines set by the Hong Kong Securities and Futures Commission in November 2023, which clarified the regulations on tokenized securities. GF Securities (Hong Kong) is actively involved in the tokenization of real-world assets, contributing to the development of new financial models and enhanced liquidity in traditional assets through blockchain technology.
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