Hong Kong’s In-Principle Ether ETF Approval Major Advantage, OSL Executive Says

An OSL executive, Gary Tiu has hailed the in-principle approval of an Ethereum spot ETF, saying it gives Hong Kong a major advantage over the U.S as far as the crypto industry is concerned.

Speaking in an interview with The Block on Monday, Tiu who is the executive director and head of regulatory affairs at OSL said the approval was “spot on”.

“Right now, the U.S. has not approved any spot products. So the Hong Kong managers are certainly standing in a very good position when they launch the ETH products in Hong Kong for sure,” Tiu said.

His emphasis is on the U.S because while the U.S has approved spot Bitcoin ETFs early this year, it seems reluctant to approve Ethereum spot ETF products even though several applications for such have been submitted immediately following the approval for Bitcoin.

Analysts have over the last few months adjusted their expectations concerning an Ethereum spot ETF to the pessimistic side, judging from the body language of the securities and exchange commission (SEC) which is responsible for such approvals.

Hong Kong, which is an upcoming global crypto hotspot, granted an in-principle approval for an Ethereum spot ETF today.

A Significant Milestone for Hong Kong

Also commenting on the approval, a former regulator at the Monetary Authority of Singapore and senior policy advisor at blockchain intelligence firm TRM Labs, Angela Ang said it is a significant milestone for Hong Kong.

“Hong Kong’s approval of the spot ether ETFs comes ahead of a US decision, and is a significant milestone in Hong Kong’s journey to become a leading crypto hub,” she said. “With fewer alternatives for Ethereum exposure, we might see the ether ETFs attract more investor interest,” she added. 

Launch is Near

The in-principle approval is just shy of a proper approval for the launch of the Ethereum spot ETF products. According to Tiu, getting such an approval suggests that the product is very close to being launched.

“From a technical standpoint, this means those products are pretty close to being ready to go live,” Tiu said. “But maybe there are still some technical conditions they need to satisfy before they can launch the public offering.”

“Typically, with the product authorization, if they already have in-principle approval, it means we are getting very, very close,” he added.

Indeed, Hong Kong is working hard towards becoming a leading crypto hub for the global crypto market. This is evident from the approval of an Etherum spot ETF, and also with Hong Kong’s openness to crypto developments.

The region also has clear regulations for the industry, something countries like the U.S still lack till today.