Hong Kong Embraces Spot Bitcoin ETFs
Harvest Hong Kong SFC’s Application
The Hong Kong Securities and Futures Commission (SFC) has received its inaugural spot Bitcoin ETF application from Harvest Hong Kong, one of China’s largest fund managers. This development closely follows the recent approval of the first spot BTC ETF by the U.S. Securities and Exchange Commission.
Regulatory Approval Process
Reports suggest that the Hong Kong SFC is actively expediting the approval process for ETFs in Hong Kong. Harvest Hong Kong’s application, submitted on Jan. 26, sets the stage for Hong Kong to launch its first spot Bitcoin ETF post-Chinese New Year, scheduled for Feb. 10.
Potential Multiple Approvals
Similar to the U.S. SEC’s approach, the Hong Kong regulatory body may consider approving multiple spot ETFs to ensure fair market access. While Harvest Fund takes the lead, other financial institutions in the region are signaling their intent to file for spot BTC ETFs in 2024.
Financial Institutions Eye Spot Bitcoin ETFs
Growing Interest
At least 10 financial institutions in Hong Kong are actively exploring the launch of spot Bitcoin ETFs. Industry leaders, including Venture Smart Financial Holdings, have set their sights on the first quarter of 2024 as the target for introducing spot ETFs.
Diverse Filers
Apart from traditional financial institutions, existing crypto companies that previously launched futures-based crypto ETFs in Hong Kong are also expected to join the wave. Samsung Asset Management, a notable player, remains open to exploring the launch of a spot ETF.
Hong Kong’s Crypto-Friendly Environment
Regulatory Support
Hong Kong has positioned itself as a key crypto destination in Asia, fostering a supportive regulatory environment. The Hong Kong SFC introduced crypto-focused regulations in 2023, allowing both institutional and retail investors to actively engage in crypto activities.
Early Crypto ETF Openings
Even before the U.S. SEC’s approval of the first spot BTC ETF, the Hong Kong SFC paved the way for crypto-based ETFs. Expressing readiness to receive applications, the regulatory body has been proactive in authorizing various funds, including digital asset spot ETFs and existing crypto futures ETFs.
