Detroit Residents to Pay Taxes with Cryptocurrency by Mid-2025
Detroit stated that accepting crypto for tax payments was a step in its larger initiative to "modernise and enhance" its payment systems.
Hong Kong’s government is looking at the possibility of launching a spot cryptocurrency exchange-traded fund (ETF). The development has caught the attention of the cryptocurrency community, especially as it comes at the same time as United States firms are facing ongoing regulatory challenges towards similar products.
BitMEX co-founder Arthur Hayes believes that Hong Kong’s entry into the spot crypto ETF space could have significant implications in the context of the economic competition between the United States and China. Hayes expressed his anticipation for this competition, noting that it could ultimately benefit Bitcoin.
He pointed out that if the US has BlackRock, its proxy asset manager, launching a cryptocurrency ETF, China also needs its proxy asset manager to develop and launch one. This rivalry between the two economies is expected to spur innovation and adoption in the cryptocurrency space, creating a more favourable environment for cryptocurrencies, including Bitcoin.
The potential launch of spot cryptocurrency ETFs in Hong Kong has drawn considerable attention, with many seeing it as a message to the US Securities and Exchange Commission (SEC). Coin Bureau commented on the situation, suggesting that the SEC might face increasing pressure as other jurisdictions, such as Hong Kong, embrace the concept of a spot Bitcoin ETF.
This move serves as a clear signal to the SEC, implying that if it continues to stifle capital market innovation in the United States, other countries are ready to step in and fill the void.
ETF opportunities in the crypto space
Crypto influencer Lark Davis also weighed in on the development, highlighting the interest from Chinese investors. The move by Hong Kong to potentially offer spot Bitcoin ETFs shows that the Chinese government doesn’t want to miss out on opportunities in the crypto space.
While both Hong Kong and the United States have permitted crypto ETFs linked to futures contracts, neither jurisdiction has yet approved a spot crypto ETF. Unlike futures-based Bitcoin ETFs that track futures contracts to replicate BTC prices, a spot Bitcoin ETF directly holds Bitcoin, allowing investors to gain exposure to the underlying asset.