The Hong Kong Securities and Futures Commission (SFC) has reportedly received the inaugural application for a spot Bitcoin exchange-traded fund (ETF), shortly after the U.S. Securities and Exchange Commission’s approval of the first spot BTC ETF in the United States.
Harvest Hong Kong, one of China’s prominent fund managers, lodged an application for a spot Bitcoin ETF with the Hong Kong SFC on January 26, as per Tencent News. The report notes that the regulatory authority is actively engaged in expediting the approval process for ETFs within the country, aiming to launch the first spot Bitcoin ETF in Hong Kong after the Chinese New Year on February 10.
According to the report, the Hong Kong regulatory body might adopt a strategy akin to that of the U.S. SEC, potentially greenlighting multiple spot ETFs to ensure fair competition. While Harvest Fund appears to be the primary applicant for a spot BTC ETF, other entities may also pursue similar endeavours. Numerous regional financial institutions have signalled their intentions to introduce a spot BTC ETF in 2024.
Previously reported by Cointelegraph on January 19, at least 10 financial institutions in Hong Kong are actively pursuing the launch of a spot BTC ETF. Giants like Venture Smart Financial Holdings have set the first quarter of 2024 as their target for introducing the spot ETF.
Several crypto companies that have already launched futures-based crypto ETFs in Hong Kong are also expected to join the list of applicants for spot Bitcoin ETFs. Samsung Asset Management, known for its Samsung Bitcoin Futures ETF launched in 2023, indicated its openness to exploring the possibility of launching a spot ETF.
Hong Kong has emerged as a prominent destination for crypto activities in Asia, thanks to its regulator’s pro-crypto stance in 2023. In that year, the SFC implemented crypto-focused regulations, enabling both institutional and retail investors to engage in crypto-related activities. Even before the U.S. SEC’s approval of the first spot BTC ETF, the Hong Kong SFC had already paved the way for crypto-based ETFs and expressed readiness to receive applications for authorizing various funds, including digital asset spot ETFs and existing crypto futures ETFs.