Hong Kong's Securities and Futures Commission (SFC) has reportedly received the first application for a spot Bitcoin exchange-traded fund (ETF) in the region. Harvest Hong Kong, one of China's prominent fund management firms, submitted the application on January 26. The move follows closely after the U.S. Securities and Exchange Commission's approval of the first spot Bitcoin ETF in the United States.
Tencent News reports that the Hong Kong regulators are actively working to expedite the approval process for domestic ETFs. It is expected that the first Hong Kong spot Bitcoin ETF could be launched after the Lunar New Year on February 10. The regulators might adopt a similar approach to the U.S. SEC and approve multiple spot ETFs to ensure fair market access.
While Harvest Fund is the initial applicant for a spot BTC ETF, other financial institutions in the region are expressing interest in launching similar products in 2024. Approximately 10 financial institutions in Hong Kong are reportedly working on introducing spot Bitcoin ETFs, with companies like Venture Smart Financial Holdings targeting the first quarter of 2024 for their launches. Some existing crypto firms, which have already introduced futures-based crypto ETFs in Hong Kong, are also expected to apply for spot Bitcoin ETFs. Samsung Asset Management, set to launch a Samsung Bitcoin futures ETF in 2023, has not ruled out the possibility of exploring a spot ETF.
Hong Kong has emerged as a prominent crypto destination in Asia, thanks to its regulator's favorable stance towards cryptocurrencies in 2023. The Securities and Futures Commission in Hong Kong implemented regulations focused on cryptocurrencies, allowing both institutional and retail investors to engage in crypto activities. Even before the U.S. SEC approved the first spot BTC ETF, the Hong Kong Securities and Futures Commission had already paved the way for cryptocurrency ETFs, expressing its readiness to accept authorization applications for various funds, including digital asset spot ETFs and existing cryptocurrency futures ETFs.
