The Hong Kong Stock Exchange (HKSE) reported that two Bitcoin (BTC) exchange-traded funds (ETF) and an Ethereum (ETH) ETF listed on HKSE averaged 9.30 million Hong Kong dollars ($1.19 million) in daily trading volume from Dec. 16, 2022, to Feb. 7, 2023. This stands in stark comparison to the Bitcoin and Ether futures and options listed on the United States-based CME Group, which surpassed $3 billion in daily average notional value. Such placement of Hong Kong in the Asian context has been credited to the clarity of regulations by the authorities in virtual asset development.

Recently, a Bitcoin ETF was launched by the investment arm of the South Korean conglomerate Samsung, to meet the requirements of institutional investors who strive to trade Bitcoin futures in the realm of the Asia-Pacific time zone. On the other hand, the United States has yet to provide regulatory clarity on Bitcoin ETFs. At present, the ProShares Bitcoin ETF listed on NYSE Arca has an average daily volume of approximately $196 million, whereas not much progress has been made in the case of Grayscale Bitcoin Investment Trust (GBTC) trust.

However, the Securities and Exchange Commission of the US has also denied the application of Ark Investment Management’s ARK21 Shares Bitcoin ETF. The worth of the development related to crypto-assets has also been complimented by the exit of Coinbase from Japan due to stricter rules, as well as the seizing of $701 million from the notorious Silk Road Bitcoins.

To conclude, crypto-asset development has hit both highs and lows in the last few months, with the regulatory clarity of Hong Kong providing users in the region with various exchange-traded funds, while the same remains absent from larger economies such as the United States.



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