{"id":409075,"date":"2024-04-13T03:00:30","date_gmt":"2024-04-13T02:00:30","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=409075"},"modified":"2024-04-13T00:22:31","modified_gmt":"2024-04-12T23:22:31","slug":"how-asias-next-crypto-investment-wave-will-be-ignited-from-bitcoin-etfs","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/how-asias-next-crypto-investment-wave-will-be-ignited-from-bitcoin-etfs\/","title":{"rendered":"How Asia\u2019s next crypto investment wave will be ignited from Bitcoin ETFs"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved multiple applications for spot <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> ETFs. On <\/span><strong><a href=\"https:\/\/www.reuters.com\/technology\/spot-bitcoin-etfs-start-trading-big-boost-crypto-industry-2024-01-11\/\">day one<\/a><\/strong><span style=\"font-weight: 400;\">, $4.6B in shares were traded, with cumulative trading volume <\/span><strong><a href=\"https:\/\/www.theblock.co\/post\/278798\/spot-bitcoin-etf-cumulative-trading-volume-50-billion\">exceeding<\/a><\/strong><span style=\"font-weight: 400;\"> the $50B mark by February 22. The ETF approval in the U.S. is expected to have a far-reaching impact across Asian markets where investment flows are already significant, especially in <\/span><strong><a href=\"https:\/\/www.coindesk.com\/consensus-magazine\/2024\/02\/13\/crypto-has-an-unrealized-opportunity-in-asia\/\">institutional investing<\/a><\/strong><span style=\"font-weight: 400;\">, and picking up pace.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The question on the minds of observers, investors, and industry participants is: \u201cWhat's next?\u201d By taking stock of what has happened in the US and as we look East, we can better understand what to expect in markets like Hong Kong and other countries in the region.<\/span><\/p>\n<h2><b>Spotlight on Hong Kong<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Optimism for approval exists about a spot Bitcoin ETF in Hong Kong. In January, they accepted the <\/span><strong><a href=\"https:\/\/www.forbes.com\/sites\/digital-assets\/2024\/01\/31\/hong-kong-regulator-accepts-first-application-for-a-spot-bitcoin-etf\">first application<\/a><\/strong><span style=\"font-weight: 400;\">\u00a0from one of China\u2019s major asset funds, Harvest Fund Management. Although hopes existed for <\/span><strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-01-19\/hong-kong-firm-targets-spot-bitcoin-btc-etf-launch-in-first-quarte\">approval<\/a><\/strong><span style=\"font-weight: 400;\"> as early as Q1 2024, it wouldn't be surprising to see it take until at least Q2. Approvals of traditional ETFs by Hong Kong's Securities and Futures Commission (SFC) typically take weeks to months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given that Hong Kong has already approved a few crypto ETF futures funds\u2014including the CSOP Bitcoin Futures, CSOP Ether Futures, and Samsung Bitcoin Futures\u2014one can reasonably hope that the path to a spot ETF approval will come with time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the face of it, giving those approvals would make sense all around. Hong Kong serves as a conduit to China\u2019s wealth and has established a regulatory environment to go alongside the depth of its asset and wealth management sector. Plus, because Hong Kong already offers <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a> futures, they may be more open to spot Ethereum ETFs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In comparison to the U.S., the SEC has received applications for spot Ethereum ETFs with a response required by May 23, although it was <\/span><span style=\"font-weight: 400;\">allowable earlier; on February 7, the SEC issued a delay statement.\u00a0<\/span><\/p>\n<h2><b>Assessing the Likelihood of Approval From Other Asian Countries<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The only major countries in the APAC region in which spot Bitcoin ETFs are not in any stage of development seem to be China, Thailand, and Singapore. Major Asian countries that will likely follow in the general pathway of the U.S. and Hong Kong include Japan, South Korea, and Australia; although these are relatively early days, people are already expressing interest in these products. Regulations in each country are somewhat different, and so the paths towards crypto product approvals will also differ.\u00a0<\/span><\/p>\n<h3><strong>South Korea<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The country\u2019s Virtual Asset User Protection Act is set to go into effect in July 2024. This gives South Korea\u2019s Financial Services Commission and the Bank of Korea the <\/span><strong><a href=\"https:\/\/www.theblock.co\/post\/237190\/south-korean-lawmakers-pass-crypto-bill-to-protect-investors\">authority<\/a><\/strong><span style=\"font-weight: 400;\"> to oversee crypto exchanges and custodians. Although news stories have provided conflicting information about the likelihood of spot Bitcoin approvals, two key factors point to optimism.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, <\/span><strong><a href=\"https:\/\/www.dlnews.com\/articles\/markets\/south-korea-leaders-eye-approval-of-bitcoin-etfs-before-poll\/\">politicians<\/a><\/strong><span style=\"font-weight: 400;\"> running for election are more open to the idea. Next, Governor Lee Bok-hyun of the Financial Supervisory Service is set to meet with the U.S. SEC\u2019s chair, Gary Gensler, in <\/span><strong><a href=\"https:\/\/www.theblock.co\/post\/279049\/south-korea-gary-gensler-nft-crypto-etf-discussion\">May<\/a><\/strong><span style=\"font-weight: 400;\"> to discuss spot Bitcoin ETFs. At minimum, this shows South Korea\u2019s openness to the financial product.\u00a0<\/span><\/p>\n<h3><strong>Japan<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Encouraging signs also exist in Japan. According to the Ministry of Economy, Trade, and Industry, the country\u2019s cabinet <\/span><strong><a href=\"https:\/\/www.coindesk.com\/policy\/2024\/02\/19\/japan-moves-closer-to-allowing-venture-capital-firms-to-hold-crypto-assets\/\">approved a bill<\/a><\/strong><span style=\"font-weight: 400;\"> that permits the nation's investment funds and venture capital companies to acquire crypto. If passed by Parliament, then this will become law. Plus, some of the country\u2019s largest financial institutions, as part of a consortium of more than seventy Japanese companies, are expected to launch a yen-backed digital currency in July 2024 privately<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This comes alongside Japan\u2019s government pension fund <\/span><a href=\"https:\/\/www.forbes.com\/sites\/digital-assets\/2024\/03\/19\/japans-trillion-dollar-pension-fund-considers-bitcoin-for-diversification\/\"><span style=\"font-weight: 400;\">r<strong>ecently mentioning that it is requesting information<\/strong><\/span><\/a><span style=\"font-weight: 400;\"> on \u201cilliquidity assets,\u201d such as bitcoin, as part of research into potential new investments. Although neither of these actions would directly allow a spot Bitcoin ETF, they both will play a role in creating a more crypto-friendly environment.<\/span><\/p>\n<h3><strong>Australia<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Australia\u2019s <\/span><strong><a href=\"https:\/\/cointelegraph.com\/news\/australia-bitcoin-sentiment-jumps-after-bitcoin-etf-approvals\">enthusiasm<\/a><\/strong><span style=\"font-weight: 400;\"> for Bitcoin has \u201cdemonstrably shifted\u201d after the SEC approval. Across demographics, positive Bitcoin sentiment increased by 25 percent while, specifically looking at people aged fifty-five and up, the news boosted Bitcoin favorability by 100 percent. Plus, this enthusiasm already has an <\/span><strong><a href=\"https:\/\/www.forbes.com\/advisor\/au\/investing\/cryptocurrency\/us-bitcoin-etfs-australian-investors\/\">outlet<\/a><\/strong><span style=\"font-weight: 400;\"> with many people in Australia able to invest in the U.S. ETFs, with predictions suggesting that the Australian Securities Exchange will soon make similar products available.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It's already highly anticipated that Monochrome Asset Management, located in Brisbane, Australia, will launch a spot Bitcoin ETF in H1 2024, with the U.S. approval possibility speeding up the approval.\u00a0<\/span><\/p>\n<h2><b>What\u2019s Stopping More Regulatory-Approved Crypto Businesses?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As countries create regulations and structures for crypto products worldwide, two key topics regularly arise the need for anti-money laundering (AML) rules and counter-terrorism financing (CTF). This may be especially important in Asia, where the threat of money laundering and terrorist funding is significant,<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hong Kong and Singapore, for example, have strict requirements for exchanges that want to receive a crypto license. Then, transactions are stringently monitored with know your customers (KYC) procedures diligently followed. Because these are key financial centers, tripping up can have costly effects, including on the reputations of the firms that skip steps or otherwise don\u2019t conform.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In South Korea, all registered and licensed exchanges need to have a banking partner because of money laundering concerns and the related terrorist financing of North Korea. When opening a crypto account in that Asian country, banking details and KYC data are linked to the crypto exchange account for transparent fund flows to satisfy regulator concerns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For spot Bitcoin ETF approval, questions about market manipulation\u2014a concern listed by Gensler when delaying U.S. approval\u2014will also need to be addressed to the satisfaction of Asian regulators. Visibility is also important to allow regulators and investors to feel confident, which will help crypto products become a bigger part of the financial pie. These structures and guardrails can allay concerns and lay the foundation for further growth. Plus, safe, secure custody for crypto products must be firmly in place in Asia and worldwide.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Optimism exists for all of this foundational work to occur in ways that allow Asian countries to participate in the in-demand crypto products like spot Bitcoin and spot Ether ETFs in ways that satisfy AML, CTF, and market manipulation concerns with safe and secure custody provided.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved multiple applications for spot Bitcoin ETFs. On day one, $4.6B in shares were traded, with cumulative trading volume exceeding the $50B mark by February 22. The ETF approval in the U.S. is expected to have a far-reaching impact across Asian markets where investment [&hellip;]<\/p>\n","protected":false},"author":1481,"featured_media":409119,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78665,25891],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Asia\u2019s next crypto investment wave will be ignited from Bitcoin ETFs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/how-asias-next-crypto-investment-wave-will-be-ignited-from-bitcoin-etfs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Asia\u2019s next crypto investment wave will be ignited from Bitcoin ETFs\" \/>\n<meta property=\"og:description\" content=\"On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved multiple applications for spot Bitcoin ETFs. 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The ETF approval in the U.S. is expected to have a far-reaching impact across Asian markets where investment [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/how-asias-next-crypto-investment-wave-will-be-ignited-from-bitcoin-etfs\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-13T02:00:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-12T23:22:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/04\/bitcoin-etf-asia.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Abel Seow\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta 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