This Banking Giant Files For Bitcoin ETF Application In Hong Kong

Following the recent approval of spot Bitcoin ETF (Exchange-Traded Funds) in the US and guidelines from Hong Kong’s Securities and Futures Commission (SFC) published in December of 2023, there has been increasing speculation about the launch of a spot Bitcoin ETF in Hong Kong this year. In a recent development, the first spot Bitcoin ETF application has been filed to the SFC for approval.

Chinese Financial Giant Takes The Lead

Earlier this month, Venture Smart Financial Holdings Ltd. (VSFG) expressed its plans to apply for a spot Bitcoin ETF with the SFC to be launched this quarter. Similarly, asset management firms like Samsung Asset Management have shown their interest in exploring the possibility in the future.

 A report from Tencent News revealed that Harvest Fund Management sent the first-ever spot Bitcoin ETF application in Hong Kong to the SFC on January 26, with the possibility of approval coming after the Lunar New Year at the earliest.

According to the news site, Hong Kong’s SFC wants to accelerate the approval of the first ETF after the US Securities and Exchange Commission (SEC) authorized the listing of the spot crypto products this month. The regulator’s plan includes listing the first ETF on the Hong Kong Stock Exchange after the Spring Festival.

Additionally, the report highlights the possibility of the SFC taking the same route as the US SEC and approving all applications simultaneously.

How Will Hong Kong’s Spot ETFs Compare To The US?

Regarding the performance of the investment products after the approval, a Hong Kong fund professional told Tencent News that “judging from the performance of the U.S. Bitcoin spot ETF, even if the Hong Kong Securities and Futures Commission approves multiple institutions at once, it may end up performing about the same as the U.S. market.”

However, some family office investor managers in Hong Kong suggested to the news site that “there may be some gap between the scale of Hong Kong spot ETF subscriptions and the United States.” The investor managers added that there’s real interest in subscribing to spot ETFs in Hong Kong, opposite to the “complexity of investment categories and operations” that stopped them from investing in the Bitcoin market before.

Moreover, the news sites reported that “compared with spot ETFs in the United States, in addition to accepting legal currency subscriptions, Hong Kong’s spot ETFs may also increase the possibility of direct Bitcoin subscriptions.”

Despite the interest and plans previously suggested by other investment and asset management firms, no organization has applied for a Spot Bitcoin ETF yet. Harvest Fund Management and the SFC haven’t issued further comment.

BTC, BTCUSDT, BTC ETF, Bitcoin ETF

Powerbridge Technologies Set To Launch Bitcoin And Ethereum Mining In Hong Kong

Powercrypto Holdings, a subsidiary of the blockchain software provider Powerbridge Technologies, is launching cryptocurrency mining, specifically Bitcoin (BTC)and Ethereum (ETH), in Hong Kong. These cryptocurrency operations will utilize environmental-friendly, green, and sustainable energy. This announcement was made in a press release on Friday, October 8, 2021

Powerbridge Technologies is a growth-driven technology company primarily engaged in SaaS solutions and Blockchain applications.

Launching Crypto Mining In Hong Kong

Powerbridge Technologies plans to deploy a total of 2,600 high-performance mining rigs in Hong Kong, including 600 BTC mining machines working at a hash rate of approximately 60 PH/s. It also includes 2,000 ETH mining machines, with a hash rate power of approximately 1,000 GH/s.

According to the announcement, Powercrypto aims to increase the BTC and ETH hash rate levels across the North American and Asian markets.

Related Reading | Since China’s Mining Ban, Bitcoin Hashrate Has Recovered by 68% And Counting

Sean Wang, Powercrypto’s General Manager and Chief Technology Officer, stated that: “Powercrypto is a major strategic move by the Company to highlight our global presence in the crypto-mining business. We will focus on enhancing our overall hash rate level in BTC and ETH mining by setting up mining fleets in North America and Asia.”

In its global BTC and ETH mining, the company plans to focus on maximizing the use of carbon-free clean energy power. Powerbridge Technologies President Stewart Lor, also commented, “We are very excited about our launch and positioning as a global presence in the cryptocurrency mining business. We expect our high-performance environmental-friendly crypto-mining fleets to significantly accelerate our revenue.”

Related Reading | Value Of Ethereum Held By Miners Reaches Five-Year Record Levels

Powerbridge Technologies states that it plans to increase its bitcoin miners with an expected capacity of 10,000 miners and an expected hash rate of 728 PH/S. Additionally, according to the company, its proprietary AI/GPU operating system can support up to 100,000 ETH miners in operation.

Powercrypto Holdings: A Subsidiary Of Powerbridge Technologies

Powerbridge Technologies established Powercrypto Holdings, its new Singapore-based subsidiary for its Crypto Mining and Digital Asset operations, late last month.

Powercrypto focuses on green renewable energy-powered crypto mining farms with its intended worldwide operations. The announcement states that the subsidiary strives to become one of the most competitive Bitcoin and Ethereum mining companies. The President of Powerbridge Technologies believes that Powerbridge is well-positioned to accelerate the growth of its crypto businesses and generate promising revenue from it.

BTC trading at $54.9K | Source: BTCUSD on TradingView.com

A few days ago, the company announced the appointment of Sean X. Wang as General Manager and Chief Technology Officer of Powercrypto Holdings. Mr. Wang, a blockchain expert, was brought on to lead the operations and technology development of Powercrypto’s crypto mining business. He reportedly has wide-ranging expertise in the fields of crypto mining and digital assets operations, having managed and operated mining fleets with nearly forty thousand Bitcoin and Ethereum mining rigs.

Digital Currencies In Hong Kong

Hong Kong has played a crucial role in the history of cryptocurrencies. It is the birthplace of some of the world’s largest crypto companies. Tether, the world’s largest stablecoin, was also launched here.

Hong Kong is a metropolitan area and special administrative region of China. Therefore, unfavorable regulations have affected the digital assets space in the region. However, it has been making efforts to develop its Central Bank Digital Currency (CBDC), e-HKD since 2017.

Featured image by CoinGeek, Chart from TradingView.com