Hong Kong's First Spot Bitcoin ETF Application Filed by Harvest Hong Kong
Summary:
The Hong Kong Securities and Futures Commission (SFC) has reportedly received its first application for a spot Bitcoin exchange-traded fund (ETF) from Harvest Hong Kong, following the approval of a similar fund by the US Securities and Exchange Commission. The SFC is also aiming to launch the first Bitcoin ETF after Spring Festival, promoting fair competition by approving multiple spot ETFs. Numerous existing crypto companies that have launched futures-based crypto ETFs in Hong Kong are expected to file for spot Bitcoin ETFs, further establishing Hong Kong as a prominent crypto hub in Asia.
Just a few weeks following the United States Securities and Exchange Commission's approval of the first Bitcoin exchange-traded fund (ETF) utilizing spot pricing, a similar application has been filed in Hong Kong with the Securities and Futures Commission (SFC). Harvest Hong Kong, one of China's major fund management firms, reportedly lodged this groundbreaking spot Bitcoin ETF application on 26th January, according to Tencent News. In a bid to expedite the ETF approval process, the regulatory body plans to launch Hong Kong's first spot Bitcoin ETF shortly after Spring Festival.
In its approval proceedings, the Hong Kong regulatory entity might mirror the approach taken by the U.S SEC, potentially giving a green light to multiple spot ETFs to promote fair competition. Harvest Fund may be at the forefront of this application, but they're not alone. Various other regional financial organizations are also considering introducing a spot BTC ETF in 2024.
A prior report from Jan. 19 by Cointelegraph indicates that a minimum of ten institutional entities are actively striving for the launch of a spot BTC ETF. In particular, financial heavyweight Venture Smart Financial Holdings (VSFG) plans for a spot ETF launch in the upcoming first quarter.
Numerous established crypto firms that previously introduced futures-based crypto ETFs in Hong Kong are anticipated to apply for spot Bitcoin ETFs, including Samsung Asset Management, which debuted the Samsung Bitcoin Futures ETF in 2023. The firm has implied it might explore the launch of a spot ETF.
With its crypto-friendly regulation established in 2023, Hong Kong has become a favored crypto hub in Asia. The SFC's progressive rules permit both institutional and individual investors to engage in crypto operations. The SFC was prepared to accept applications for the authorization of various funds including Virtual Asset Spot exchange-traded funds (VA Spot ETFs) alongside the existing crypto futures ETFs even before the U.S. SEC's approval of its inaugural spot BTC ETF.
Highlight: The regulatory obstacles in Hong Kong known as the 'Travel Rule' caused $1.14B in 3AC’s assets to be frozen, as reported in Asia Express.
Published At
1/29/2024 11:08:40 AM
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