The U.S securities and exchange commission (SEC) has approved 11 spot Bitcoin ETFs, which is a great milestone. According to Animoca Brands co-founder Yat Siu, this could impact Asia on a greater level.
While the ETFs are supposed to drive more participation in the crypto industry because of the safer atmosphere it provides in general, Siu said the impact of the ETFs is likely to be felt more in Asia considering the direction that the legislation around crypto has been going already.
“There’s regulatory clarity and there’s this willingness from, basically governments and regulators to sort of build this ecosystem and partake and see the opportunities that [are] out there,” Siu added.
While SEC chair Gary Gensler still remains critical of cryptocurrencies even after the ETF approval, Siu said this is the general attitude towards crypto in the U.S which is quite different in Asia.
He added that Asians, especially young adults are more open to crypto than those in the U.S, adding that “If I was to put sort of a comment around this, I would say that the American dream is more alive and well in Asia than it is in America.”
“In Asia, even though there’s also, of course, inequity, capitalism has broadly been of benefit to this and the last generation,” Siu commented. “I mean, look at China, look at South Korea, Southeast Asia, just generally speaking, these are all countries that 30 years ago were literally nowhere, like they had nothing, in many cases,” the Animoca co-founder explained.
The Race for Bitcoin ETF in Asia
Now that the U.S has approved spot Bitcoin ETFs, it remains to be seen which Asian country will be the first to approve the same. There are many options as Asians are far more open to crypto than Americans, but experts have a few in mind.
The first is Hong Kong, which has positioned itself as a crypto hub after releasing its crypto rulebook in November 2022. Commenting, Angela Ang, a former Monetary Authority of Singapore regulator and senior policy advisor at blockchain intelligence firm TRM Labs, said:
“In Asia, Hong Kong is definitely the prime candidate for the next spot crypto ETF. Aligning with its crypto hub ambitions, Hong Kong regulators have already sent a clear message that there is an appetite to consider spot crypto ETFs, including for retail.” “The next step is aligning regulatory and industry expectations on controls and compliance, in order to make this a reality,” Ang added.
Already, 10 fund managers, including those backed by Chinese capital, are looking to launch spot crypto ETFs in the city, according to Livio Weng, COO of Hong Kong-based crypto exchange HashKey.
Possible Challenges to ETFs in Asia
Although Aisa seems zealous and could launch crypto ETFs in no time, there are certain variables that may amount to a challenge. One of these is the employment of capital inflows in Asia compared to the vast amount in the U.S.
“The United States has a well-established foundation in this aspect. Although Asia is not inferior, the success factor lies in how effectively the finance sector and funds can be integrated,” Ko Jangdeok, CEO of SBINFT said.
Another factor according to Jangdeok is the attitude of regulators towards the ETFs, as the crypto industry is still faced with challenges such as high volatility and fraud.
