Hong Kong Finance Secretary Highlights Flexibility for the City’s 6 Spot Crypto ETFs

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Hong Kong Finance Secretary Christopher Hui discusses the city's crypto ETFs.
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Hong Kong’s 6 Spot Crypto ETFs

The pacy financial situation of the in-kind subscription and redemption of six spot crypto ETFs in Hong Kong is underscored by Hong Kong’s finance secretary, Christopher Hui. He elaborated on the point that the government of Hong Kong has the flexibility and the superiority to emphasize blockchain technology through language policy and using Web3.

Hui, the Hong Kong Mavens, also brought new techs into the district during his visits to several European conferences. Meanwhile, the minister stressed that his authority has already established robust guidelines and rules for using cryptocurrencies and tokens. With this example, Hong Kong can clearly show its willingness to reshape itself into a virtual asset hub.

The first of its kind in the world, Hong Kong unveiled the six virtual asset tokenized ETFs and they were listed there on April 6th. There was a reference to an innovation that Hong Kong was the pioneer of with an in-kind mechanism for redemption through a blockchain on the investor’s account i.e. the transmission of virtual asset-currency units, Hui, stated in the report.

ETF Performance Compared to the U.S.

Even though Hong Kong appears to have made some progress in this regard, their spot crypto ETFs still have lower returns compared to the U.S. As per the data of the specialized site The Block, the three Hong Kong spot bitcoin ETFs made a sum of $6.67 million on Tuesday. Whereas the total trading volume of 11 U.S. bitcoin ETFs involving spot Bitcoins was $1.1 billion that day, inform the shadowbanks by far.

Besides, Hui mentioned that the authority had initiated the second round of multi-currency tokenized green bonds at the beginning of this year, in the amount of $770 million. The multi-currency tokenized bonds that represent the world’s first multi-currency government green bonds that are native to digital world were released during this transaction.

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Strategic Advantages Under “One Country, Two Systems”

During Europe tour, Hui said Hong Kong is considered to be the best candidate for the beneficial. Depending on the “one country, two systems” framework, Hong Kong has a range of strategic advantages. These advantages like free capital flow, a business-friendly environment, a simple and competitive tax system, and a diverse talent pool. According to Hui, the best gateway to the regional market is The Hong Kong SAR Greater Bay Area (GBA) which, is about 86 million consumers of middle and wealth-income.

Hong Kong Gradually Becoming A Crypto Hub

The successful operation of Hong Kong’s startup system, on the other hand, has already made it a leader in the field of finance and tech innovation. Not long ago, almost 4300 startups provided jobs for more than 16000 people. This flourishing ecosystem, together with situating Hong Kong, and (the) implementation of regulatory (in)ita(tive,ivies), strengthens the city’s position as a raising crypto-hub.

Hui also talked with his counterparts from Europe and the leaders of the financial sectors about the regulatory model practiced by Hong Kong in the cryptocurrency domain. The process of gaining a license, for instance, virtual asset trading platforms, and the emphasis on stablecoin issuers as well as over-the-counter trading without the presence of regulations also the introduction of regulations for the mainstream, by the Hong Kong authority, have the relative impacts toward the inspiration, and maintenance of the comprehensive regulatory environment of the sector.

Upcoming Hong Kong FinTech Week

Besides the officials, he requested the presence of Hong Kong’s regularity as well as leader at the Hong Kong FinTech Week between 245 and 29 2023. The SFCBomp FinancialServices Sector, and Treasury Bureau have set up a recurring event that happens entirely online, the Hong Kong FinTech Week, held every October, where the main goal is to support the cooperation and exchange of ideas with the key stakeholders in the fintech industry.

Conclusion

Major attention from Chinese mainland investors was a big accomplishment out of the recent Bitcoin Asia 2024 conference in Hong Kong that also had a local contingent. Bitcoin Magazine put together the main topic of the glimpse into Asia’s new cryptocurrency investment journey of the event. These were the first of their kind, and they were set by HKEX on April 30 in Hong Kong. The Singapore Exchange (SGX) bought these ETFs which connote to Hong Kong’s token timidness towards the crypto market, lower than how its ambitions to foster a cryptocurrency-friendly regional area were in contrast to those.

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