Crypto News: HongKong Approves First Crypto ETF Fund Worth $100 Million

Hong Kong, China has approved an Exchange Traded Fund (ETF) worth $100 million that would also include 10% in cryptocurrency. The ETF would be raised by Yibo Financial as per a report from Wu Blockchain.

Hong Kong, China has approved the first ETF fund involving cryptocurrency, and Yibo Financial said it will raise 100 million US dollars, of which no more than 10% will be cryptocurrency.

— Wu Blockchain (@WuBlockchain) January 14, 2021

While the US regulators are yet to approve a crypto ETF specifically Bitcoin ETF but most of the applications submitted before the authorities have been rejected for years. Regulators have cited the small share of the crypto market that might lead to market manipulation. However, it is also important to note that there is a change in administration due to the Presidential elections and many believe and hope that the new administrators would allow for a Bitcoin ETF.

Vaneck, a multi-billion dollar company whose ETF proposal was rejected a couple of years ago has filed a fresh application as Bitcoin soared to new all-time-highs with great institutional interest.

China Looking Beyond Just Sovereign Digital Currency

China is currently at the forefront of the sovereign national digital currency race with its digital yuan nearing launch while many other countries have just begun the research process for CBDC which might take them at least 5 years to catch up with China. When the authoritarian state back in 2017 banned the use of Bitcoin and cryptocurrencies, many thought there was no turning back as China would never allow for any other form of currency to become popular.

The status quo against cryptocurrencies seems to near in end, not completely though, but that is understandable. Hong Kong, a controversial part of China has not just approved a crypto-based ETF but also issued its first crypto exchange license. However, it is also important to note that these services are not available for common traders rather for selected professional investors.

Hong Kong is catching up in the cryptocurrency field, and it has just issued its first exchange license. However, both licenses and ETFs are only allowed to target professional investors.

— Wu Blockchain (@WuBlockchain) January 14, 2021

Hong Kong’s growing interest in crypto assets might indicate the changing Chinese tactics towards the use of digital assets. While most of the countries are trying to incorporate better regulations China might not want to be left behind after the development of the digital Yuan.