Gary Tiu: Hong Kong Could See First Spot Crypto ETFs by Mid-2022
Gary Tiu, executive director and head of regulatory affairs at OSL, a Hong Kong-licensed crypto exchange, has stated that the city could potentially launch its first spot crypto exchange-traded funds (ETFs) by the middle of this year. Tiu revealed that OSL is in close communication with several fund companies, with five to ten firms currently studying the possibility of launching such an ETF. He also mentioned that around five companies are progressing faster than others and could roll out Hong Kong’s first spot crypto ETFs by mid-2022.
Pressure to Keep Fees Reasonable
Tiu acknowledged the pressure to ensure that fees are not excessively high in their collaboration with fund companies due to the limited number of licensed crypto exchanges in Hong Kong. Currently, there are only two licensed crypto exchanges in the city.
Spot Crypto ETFs Promote Orderly Markets
Tiu confirmed the details in the media report and emphasized the significance of introducing spot crypto ETFs in Hong Kong. He stated that these ETFs offer crucial benefits such as promoting orderly markets for digital assets, establishing investor protection models, and accelerating integration between regulated digital asset platforms and traditional financial institutions.
Other Players Exploring Spot Crypto ETFs
HashKey, another licensed crypto exchange in Hong Kong, recently announced its discussions with asset managers regarding potential spot crypto ETF launches. Meanwhile, Venture Smart Financial Holdings Ltd, a local financial services firm, plans to potentially launch a spot bitcoin ETF within the first quarter of this year.
Hong Kong Prepares for Spot Crypto ETFs
The Securities and Futures Commission and the Hong Kong Monetary Authority have reviewed their existing policy to pave the way for spot crypto ETFs. In December, both agencies published circulars addressing the requirements for these ETFs. The SFC specified that transactions of crypto made by spot crypto ETFs should be conducted through licensed crypto platforms or authorized financial institutions.
Hot Take: Hong Kong Nears Milestone with Potential Spot Crypto ETF Launches
Hong Kong’s crypto market is on the verge of a significant development with the potential launch of spot crypto ETFs. OSL and other licensed exchanges are actively collaborating with fund companies to make this milestone a reality. These ETFs offer numerous benefits, including promoting orderly markets, protecting investors, and bridging the gap between regulated digital asset platforms and traditional financial institutions. With regulatory support and growing interest from various players, Hong Kong is positioning itself as a key player in the global crypto ecosystem.
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