Following the approval of the first spot BTC ETF in the U.S., Hong Kong is poised to make a similar move, with reports indicating that 10 financial institutions in the region are gearing up to submit applications for launching BTC ETFs.
Harvest Hong Kong, one of China’s major fund managers, took the lead by filing a spot Bitcoin ETF application with the Hong Kong Securities and Futures Commission (SFC) on January 26, as per Tencent News. The regulatory body is actively expediting the approval process, aiming to launch the first Hong Kong spot Bitcoin ETF shortly after the Chinese New Year on February 10.
While Harvest Fund is the first to seek approval for a spot BTC ETF, it’s anticipated that more institutions will follow suit. The SFC may adopt a strategy similar to the U.S. SEC, approving multiple spot ETFs to ensure fair competition. Notably, at least 10 financial institutions in Hong Kong have expressed their intent to launch spot BTC ETFs in 2024, with some, like Venture Smart Financial Holdings, targeting the first quarter of the year for their launch.
Additionally, existing crypto companies in Hong Kong that have already introduced futures-based crypto ETFs are expected to join the race for spot Bitcoin ETF approvals. Samsung Asset Management, the creator of the Samsung Bitcoin Futures ETF in 2023, has expressed openness to exploring the possibility of launching a spot ETF.
Hong Kong has gained prominence as a leading crypto destination in Asia, thanks to its regulator’s pro-crypto stance in 2023. The SFC introduced crypto-focused regulations, enabling both institutional and retail investors to engage in crypto activities. Even before the U.S. SEC greenlit the first spot BTC ETF, the Hong Kong SFC paved the way for crypto-based ETFs, expressing readiness to receive applications for various funds, including digital asset spot ETFs and existing crypto futures ETFs.
