Companies in Hong Kong are reportedly hoping to give US companies a leg up and gain an edge in the market by first rolling out Ethereum (ETH) exchange-traded funds (ETF).
Hong Kong news outlet Sing Tao Daily reports, citing “industry insiders,” that spot ETH ETFs in the jurisdiction are undergoing “intensive preparation.”
Livio Weng, the chief operating officer of digital asset financial services company HashKey Group, also tells Sing Tao Daily that the Ethereum spot ETF is currently the most anticipated product by global crypto investors.
Hong Kong’s Securities and Futures Commission (SFC) published the requirements for spot crypto ETFs in December. Multinational asset management giant Harvest Fund Management has reportedly filed its first application for a spot Bitcoin (BTC) ETF next month.
On January 10, the US Securities and Exchange Commission (SEC) gave the green light to 10 spot BTC ETFs after applicants spent months working with the regulator to refine their proposals.
The SEC is also currently evaluating numerous bids to create Ethereum ETFs from major asset managers such as BlackRock, Grayscale and Fidelity, although decisions on some applications have been delayed.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, say May is the month in which the SEC is ready to rule on the potential ETH products, although it estimates that there is only a 35% chance that they will be approved.
“I understand all the reasons why they SHOULD approve it (and we personally believe they should), but all the signs/sources that made us bullish 2.5 months before the BTC spot are not there this time. Please note: 35% is not 0%, it is still possible, and in the long term we think it will happen.”
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