Bitcoin ETF-led crypto industry takes a rather unique direction in Asia – How will this affect investors?

In recent years, the global financial landscape has witnessed a transformative shift with the advent of cryptocurrencies, and now, a new chapter is unfolding as Bitcoin Exchange-Traded Funds (ETFs) pave the way for a distinctive direction in the Asian markets. 

The introduction of Bitcoin ETFs has sparked significant interest and debate, as it represents a departure from traditional investment avenues and opens up new opportunities for investors. In particular, the Asian markets, known for their dynamism and responsiveness to emerging trends, are poised to play a crucial role in shaping the trajectory of the crypto industry through the lens of ETFs.

Bitcoin ETFs take in Asia

Industry analysts and experts in the United States have long expressed concern that the country “could miss the bus” if clear and possibly favorable regulatory measures for the crypto ecosystem are not implemented. 

However, the acceptance of spot bitcoin ETFs in the United States puts it ahead of Asia, Africa, the European Union, and other nations that already have bitcoin ETF products.

Given that states in and around Asia have been competing to become crypto hubs, expectations for a bitcoin ETF are higher than in Africa. To varying degrees, the UAE, Singapore, and Hong Kong have developed rules aimed at attracting shops and financial institutions interested in the crypto industry. However, no regulators have yet approved a bitcoin ETF-like product.

Now that the US has approved over a dozen products to start, other countries, including the U.K., Hong Kong, Singapore, and Japan, could implement laws “to prevent large and medium-sized financial institutions from transferring their funds out” of their territories.

Regions next in line for Bitcoin ETFs

According to industry estimates, Australia will be among the first, with approval from the Australian Securities Exchange (ASX) likely in the “first or second quarter of 2024.”

Technically, Australia already offers two exchange-traded instruments that provide exposure to spot crypto assets on Cboe Australia. However, Australian industry analysts say there is greater enthusiasm about the possibility of a similar product trading on Cboe Australia’s larger rival, the ASX, where the expectation is due to the larger quantities available.

The Australian Securities and Investment Commission (ASIC) is the market authority that has essentially “allowed” such products since 2022.

Hong Kong, Singapore, and the UAE have expressed an interest in becoming global crypto hubs, but no bitcoin ETFs have been launched in their respective locations.

Hong Kong lawmaker Johnny Ng, one of the city’s most vocal crypto supporters, took to X hours after the US approvals to urge “Hong Kong must dare to be a ‘leader’ in the field of virtual assets” and “promote the implementation of spot ETFs as soon as possible.” 

Hong Kong’s attempts to recover its status as a crypto hub have resulted in the implementation of a new licensing scheme that allows cryptocurrency exchanges to operate in a regulated manner. It has also stated that it is ready to accept applications for spot crypto ETFs.

Singapore’s efforts to achieve a balance between favorable and protective rules while continuing to foster technology without speculation have shown a hot and cold attitude towards crypto. However, analysts feel that the approvals in the United States may be exactly what the city-state needed to legalize products such as bitcoin ETFs.