After Hong Kong approved the first Bitcoin and Ethereum spot ETFs, experts predict that regulatory agencies in other Asian countries such as South Korea, Japan, and Singapore may follow suit. South Korea is expected to be the first country to do so.
In Hong Kong, the first Bitcoin and Ethereum spot ETFs are set to be launched soon, with Huaxia Fund (Hong Kong), CSOP Asset Management, and HashKey Capital announcing on Monday that they have received provisional approval from the Securities and Futures Commission of Hong Kong. It is rumored that the Bitcoin spot ETF will be available for trading as early as April 25.
According to Blockworks, after the Securities and Futures Commission of Hong Kong provisionally approved Bitcoin and Ethereum spot ETFs, regulatory agencies in other Asian countries may also follow suit. South Korea, Japan, and Singapore are among the countries expected to emulate Hong Kong and approve ETFs related to virtual assets.
Karim Saber, a researcher at cryptocurrency ETP issuer 21Shares, also stated that the adoption rate of cryptocurrencies in countries such as South Korea, Japan, and Singapore is higher than the average level, positioning Asia in a leading position in approving new Bitcoin spot ETFs.
Furthermore, in the recent parliamentary elections in South Korea on the 10th, the main opposition party, the Democratic Party, won a majority of seats, securing a landslide victory. Karim Saber believes that the victory of the Democratic Party, which holds a friendly attitude towards Bitcoin, also increases the possibility of South Korea approving Bitcoin spot ETFs in the near future.
In summary, Karim Saber expects that regulatory agencies in South Korea will be the first to approve Bitcoin spot ETFs this year, with Japan and Singapore following not too far behind. Last month, the Government Pension Investment Fund (GPIF) of Japan also announced that it is considering investing in assets with lower liquidity such as Bitcoin. In February, the Japanese government also stated that it will amend the law to include cryptocurrencies in the list of assets that local investment limited liability partnerships can acquire or hold.
On the other hand, Independent Reserve, an Australian cryptocurrency exchange, conducted a survey in March among Singaporeans and found that one-third of the respondents are considering investing in overseas Bitcoin spot ETFs. Although the Monetary Authority of Singapore is concerned about retail investors investing in spot ETFs, cryptocurrency adoption in the country is continuing to develop. For example, Singapore users were recently allowed to use Bitcoin, Ethereum, and stablecoins as payment methods on the ride-hailing app Grab. Karim Saber believes that this move indicates the integration of cryptocurrencies into mainstream business sectors.
Tim Bevan, CEO of ETC Group, a cryptocurrency ETP issuer, estimates that Japan and South Korea may approve cryptocurrency spot ETF products within the next 6 to 12 months. Although the approval timeline is difficult to predict, these countries are catching up with the United States.
As for Taiwan, mainstream securities firms including Yuanta Securities, KGI Securities, and SinoPac Securities announced at the end of January that they have been notified by the regulatory authorities that they can only accept sell orders for entrusted trading of foreign securities linked to virtual currencies such as Bitcoin, due to the high price volatility and risks of virtual currency products. As for when Taiwanese investors can purchase overseas Bitcoin ETFs through entrusted trading, Gao Jingping, Deputy Director of the Financial Supervisory Commission’s Securities and Futures Bureau, stated that the matter is currently being discussed by the Securities Association, and the results will be announced in April of this year.
However, legislator Ke Juin questioned that if securities firms are prohibited from conducting entrusted trading for the public, it will force the public to only purchase from overseas securities firms. This will make it more difficult for the government to monitor the investment situation of the public in Bitcoin ETFs, and securities firms will also lose commission income. If individuals have investment disputes with overseas securities firms, they will have to bear the risks themselves and may even fall into scams without protection, resulting in a three-way loss for the government, securities firms, and the public.