Hong Kong SFC receives first spot Bitcoin ETF application
The Hong Kong Securities and Futures Commission (SFC) reportedly received its first spot Bitcoin exchange-traded fund (ETF) application just weeks after the United States Securities and Exchange Commission approved the first spot BTC ETF in the U.S.
Harvest Hong Kong, one of China’s largest fund managers, submitted a spot Bitcoin ETF application to the Hong Kong SFC on Jan. 26, reported Tencent News. The report added that the regulatory body is actively working to expedite the process for approval of ETFs in the country to launch the first Hong Kong spot Bitcoin ETF after the Spring Festival.
According to the report, the Hong Kong regulatory body may follow a similar approach to that of the U.S SEC and approve multiple spot ETFs to ensure a level playing field. While Harvest Fund might be the first applicant to file for a spot BTC ETF, it is not the only one. Several other regional financial institutions have shown interest in launching a spot BTC ETF in 2024.
As Cointelegraph reported on Jan. 19, at least 10 financial institutions in the country are actively working to launch a spot BTC ETF. Financial giant such as Venture Smart Financial Holdings (VSFG) have already set the first quarter as their target to launch the spot ETF.
Several existing crypto companies that launched futures-based crypto ETFs in Hong Kong are also expected to be among spot Bitcoin ETF filers such as Samsung Asset Management, which launched Samsung Bitcoin Futures ETF in 2023, reportedly said it wouldn’t “eliminate the possibility of exploring to launch a spot ETF.”
Hong Kong has emerged as one of the leading crypto destinations in Asia thanks to the regulator’s pro-crypto approach in 2023 . The SFC created crypto-focused regulations in 2023, allowing institutional and retail investors to participate in crypto activities. Even before the U.S. SEC approved the first spot BTC ETF, the Hong Kong SFC opened the door for crypto-based ETFs as it expressed its readiness to receive applications for the authorization of various funds, including Virtual Asset Spot exchange-traded funds (VA Spot ETFs), alongside the existing crypto futures ETFs.
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