As the first Bitcoin spot price exchange-traded funds receive historic approval in the United States, Asian industry leaders, particularly in Hong Kong, are actively exploring similar crypto products.
BitGo’s APAC Director Abel Seow told Cryptonews that they are witnessing an increased interest in similar products post spot Bitcoin ETF approval in the United States. He said that they are seeing increased momentum in markets like Hong Kong, and “murmur of interest” in places like South Korea.
Over a dozen fund providers are currently in discussions with Hong Kong’s Securities and Futures Commission (SFC) to formulate a strategy for launching a local Bitcoin spot ETF.
Abel further noted that the surge in crypto ETFs shows that a lot of these regulators around the world have been keeping an eye on what the US are doing and what they will be doing. If the US approves spot Ethereum ETF in May, that could be another monumental moment for everyone involved, he added.
BitGo was earlier selected as custodian for Hashdex’s spot Bitcoin ETF in the United States.
Talking about Hong Kong, Abel noted that they have deep capital markets among the best recognized markets in the region and a very skilled institutional workforce that is plugged into the rest of the world. Launching an ETF or ETF derivatives would be playing to their strengths, he added.
As reported earlier, several asset managers have hinted at launching a spot Bitcoin ETF this year in Hong Kong.
BitGo Eyes Further Expansion into Asia
BiGo recently acquired in-principle approval as a major payment institution. Abel emphasized on the importance of Asian markets for them going forward. He noted:
“We’ve secured our IPA with VARA in Dubai, with full approval coming soon. In Korea, we’ve established a partnership with Hannah Bank, known as the JPMorgan of Korea, and we’re preparing to apply for a license there soon. Additionally, there’s potential for an announcement in Indonesia within the next few months, and we may have developments in Hong Kong in the coming months as well.”
BitGo raised $100 million in series C funding at a valuation of $1.75 billion valuation in August last year.
Future of Structured Crypto Products
Talking about the future of structured crypto products like spot Bitcoin ETF, Abel said that there could be a world where such products become the norm for private clients to access crypto. He noted:
“I suspect that as momentum builds up in this space, and people get more comfortable, they will see Bitcoin as an asset class no similar to tech stocks. And whether you want to buy options on GameStop or options on Bitcoin, it can be one of the same thing.”