March 27, 2024
First Spot Bitcoin ETF Application in Hong Kong
Bitcoin ETF

First Spot Bitcoin ETF Application in Hong Kong

Hong Kong’s Securities and Futures Commission (SFC) has reportedly received its inaugural application for a spot Bitcoin (BTC) exchange-traded fund (ETF). Harvest Hong Kong, one of China’s major fund managers, applied on Jan. 26, following the recent approval of the first spot BTC ETF by the U.S. Securities and Exchange Commission.

The Hong Kong SFC aims to expedite the approval process and potentially launch the first Hong Kong spot Bitcoin ETF after the Chinese New Year on Feb. 10. The regulatory body might adopt a strategy similar to the U.S. SEC, approving multiple spot ETFs to ensure fair competition. While Harvest Fund is the first applicant, other regional financial institutions have expressed interest in launching spot BTC ETFs in 2024. At least 10 financial institutions in Hong Kong are actively working toward this goal, with some targeting the first quarter of 2024 for their spot ETF launches.

Several existing crypto companies in Hong Kong that introduced futures-based crypto ETFs are also expected to file for spot Bitcoin ETFs. Samsung Asset Management, which launched the Samsung Bitcoin Futures ETF in 2023, has expressed openness to exploring a spot ETF.

Hong Kong has become a prominent Asian crypto destination due to its regulator’s pro-crypto stance in 2023. The SFC introduced crypto-focused regulations, enabling institutional and retail investors to engage in crypto activities. Even before the U.S. SEC approved the first spot BTC ETF, the Hong Kong SFC had paved the way for crypto-based ETFs, welcoming applications for various funds, including digital asset spot ETFs and existing crypto futures ETFs.

Image by jorono from Pixabay

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