Hong Kong is poised to introduce a spot Bitcoin (BTC) exchange-traded fund (ETF), with local financial services company Venture Smart Financial Holdings (VSFG) planning to unveil such a fund in early 2024, as reported by Bloomberg. Brian Chan, the head of investments and products at VSFG Group, expressed optimism about the market's potential, aiming to manage $500 million in assets by year-end. The firm is currently seeking approval from the Hong Kong Securities and Futures Commission (SFC) to launch this Bitcoin ETF.
This development follows the SFC's December 2023 announcement that it was open to accepting applications for spot Bitcoin ETFs from authorized and licensed institutions in Hong Kong. Local reports suggest that up to 10 fund managers are gearing up to introduce cryptocurrency-based ETFs in the region. RJ Ke, a researcher at Ethereum scaling startup Taiko, mentioned that Hong Kong could expedite Bitcoin ETF applications in the coming months, especially after the successful debut of a similar product in the United States on January 11.
Companies already involved in futures-based crypto ETFs in Hong Kong, like Samsung Asset Management which launched a Bitcoin futures ETF in 2023, are also considering the launch of a spot Bitcoin ETF. Samsung Asset Management has indicated openness to exploring this possibility, aligning with the emerging trend in the region.
