After the first batch of Bitcoin spot ETFs in the United States was approved, the first Bitcoin spot ETF in Asia is expected to be launched soon. Hong Kong financial institutions are accelerating the layout of virtual asset spot ETFs, according to Chinese media reports. Some fund company subsidiaries have submitted relevant applications, and some that have not yet submitted applications are also speeding up preparations.
(Harvest Fund is rumored to launch the first Bitcoin spot ETF in Hong Kong, expected to be listed after the Lunar New Year.)
(Hong Kong’s first Bitcoin spot ETF is coming? OSL Exchange: Expected to be launched in the first half of the year.)
Hong Kong currently has three virtual asset futures ETFs listed. The Hong Kong Securities and Futures Commission stated in December last year that it is ready to accept authorization applications for virtual asset spot ETFs and other related funds. Harvest International recently announced that it has submitted a Bitcoin spot ETF application to the Hong Kong Securities and Futures Commission in January, becoming the first institution in Hong Kong to propose such a product.
Multiple institutions are seeking to issue spot ETFs. According to China Fund News, many Hong Kong institutions are eager to take action. After the approval of the Bitcoin spot ETF in the United States, Hong Kong financial institutions are accelerating the layout of virtual asset spot ETFs. It is reported that some fund company subsidiaries have submitted relevant applications, and some that have not yet submitted applications are also speeding up preparations.
A person from Huaxia Fund (Hong Kong), who intends to issue spot ETFs, said that in their view, futures-based virtual asset ETFs have certain limitations, and futures rollovers will also incur higher costs. The report mentioned that some institutions have submitted virtual asset spot ETF applications. Another fund company pointed out that the US Bitcoin spot ETF is limited to cash redemption. In contrast, according to the Hong Kong Securities and Futures Commission’s disclosure, Hong Kong Bitcoin spot ETFs will adopt multiple redemption methods, including cash and physical.
The person from this fund company believes that ETFs can bring better liquidity to investors and are more convenient compared to cryptocurrency exchange trading. At the same time, the more standardized pricing mechanism of ETFs can avoid price fluctuations. For the virtual asset market, spot ETFs will continue to attract funds from traditional financial markets and are expected to usher in a new growth cycle.
HashKey Group’s Chief Operating Officer, Wong Hiu Ki, revealed in January that more than 10 fund companies are actively preparing to launch spot ETFs in Hong Kong, of which 7 to 8 have entered the actual promotion stage. Multiple Hong Kong spot ETF applications have also entered the substantive promotion cooperation stage with HashKey, and they are striving to promote the landing of Hong Kong spot ETFs as soon as possible in the next few months.
Further reading:
Hong Kong’s first Bitcoin spot ETF is coming? OSL Exchange: Expected to be launched in the first half of the year
Will it become an important channel for Asian capital inflows?
It is worth noting that the institutions interviewed generally believe that Hong Kong’s virtual asset ETF has greater development potential. In the view of the subsidiaries of these funds, with the continuous improvement of regulations, the increasing richness of products, and the continuous increase in participating institutions and investors, Hong Kong’s virtual asset spot ETF is expected to become an important channel for Asian capital inflows.
At the same time, the institutions interviewed believe that the Hong Kong Securities and Futures Commission’s positive attitude towards virtual asset spot ETFs also reflects Hong Kong’s in-depth understanding and recognition of blockchain technology, which helps strengthen Hong Kong’s position as a leading digital asset center in the region, support the development of Hong Kong as the preferred ETF market in Asia, and further enhance Hong Kong’s attractiveness and competitiveness as an international financial center.
Huaxia Fund (Hong Kong) stated that the SEC’s approval of spot Bitcoin ETFs has played a role in promoting the development of related products in the Hong Kong market, providing a reference example for the Hong Kong market. However, there are certain differences in the virtual asset ecosystem and regulatory requirements between the two places, and Hong Kong products need to develop a product framework suitable for Hong Kong regulations and investors.
Hong Kong fund subsidiaries believe that the new regulations on virtual asset supervision in Hong Kong and the listing of virtual asset spot ETFs may promote proactive cooperation between the virtual asset industry and regulators, providing compliant, safe, and inclusive investment channels for overseas investors. In the long run, it may also help Hong Kong cultivate a globally competitive Web3.0 industry ecosystem.
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