Weeks after the US SEC approved the first spot Bitcoin exchange-traded fund (ETF) in the U.S., the Hong Kong Securities and Futures Commission (SFC) reportedly received the application for the first spot Bitcoin ETF.
On January 26, Harvest Hong Kong, one of the largest fund administrators in China, reportedly informed Tencent News that it had submitted an application for a spot Bitcoin ETF to the Hong Kong SFC.
In order to launch the first Bitcoin ETF space in Hong Kong following the Spring Festival, the regulatory body is reportedly working diligently to expedite the process for ETF approval in the country.
In order to guarantee a level playing field, the Hong Kong regulatory body may adopt a strategy similar to that of the U.S. SEC and approve multiple spot ETFs, according to the report.
Although Harvest Fund has submitted the initial application for a spot Bitcoin ETF, it is not the sole applicant. In 2024, a number of additional regional financial institutions have expressed interest in introducing a spot Bitcoin ETF.
At least ten financial institutions in the country are actively pursuing the introduction of a spot Bitcoin ETF, as previously reported. Venture Smart Financial Holdings (VSFG) and other financial behemoths have already established the first quarter as the launch window for the spot ETF.
There is anticipation that spot Bitcoin ETF filers will include a number of established crypto firms that have introduced futures-based crypto ETFs in Hong Kong.
For instance, Samsung Asset Management, which introduced the Samsung Bitcoin Futures ETF in 2023, has reportedly stated that it will not “rulout the possibility of investigating the possibility of launching a spot ETF.”
Since the regulator’s pro-crypto approach in 2023, Hong Kong has become one of the most prominent crypto destinations in Asia. By establishing crypto-focused regulations in 2023, the SFC authorized both retail and institutional investors to engage in crypto-related activities.
The Hong Kong SFC declared its openness to receiving applications for the authorization of diverse funds, including Virtual Asset Spot exchange-traded funds (VA Spot ETFs), in addition to the pre-existing crypto futures ETFs, prior to the U.S. SEC’s approval of the first spot BTC ETF.
