Banking Giant Initiates Bitcoin ETF Application in Hong Kong

Spot Bitcoin ETF Application Filed in Hong Kong

Following the recent approval of spot Bitcoin ETFs in the US and guidelines from Hong Kong’s SFC, there has been speculation about the launch of a spot Bitcoin ETF in Hong Kong this year. Venture Smart Financial Holdings Ltd. (VSFG) expressed its plans to apply for a spot Bitcoin ETF with the SFC this quarter. Harvest Fund Management has now filed the first-ever spot Bitcoin ETF application in Hong Kong, with potential approval coming after the Lunar New Year. The SFC aims to accelerate the approval process and may approve all applications simultaneously, similar to the US SEC. The first ETF is expected to be listed on the Hong Kong Stock Exchange after the Spring Festival.

Comparison with US Spot ETFs

A Hong Kong fund professional expects that Hong Kong’s spot ETFs will perform similarly to those in the US market. However, some family office investor managers suggest there may be a gap in subscription scale between Hong Kong and the US. They also anticipate that Hong Kong’s spot ETFs may allow for direct Bitcoin subscriptions, in addition to accepting legal currency subscriptions. Despite previous interest from investment firms, no other organization has applied for a Spot Bitcoin ETF in Hong Kong yet.

Hot Take: Launch of Spot Bitcoin ETF Expected in Hong Kong

The recent filing of the first spot Bitcoin ETF application in Hong Kong marks an important step towards its potential launch this year. With increasing interest and support from financial giants like Venture Smart Financial Holdings Ltd., it is likely that more applications will follow suit. If approved, these spot Bitcoin ETFs could provide investors in Hong Kong with easier access to the crypto market and potentially attract more participants due to their direct subscription options. While comparisons are made to the performance of US spot ETFs, Hong Kong’s market may have its own unique characteristics. Overall, the launch of spot Bitcoin ETFs in Hong Kong could further contribute to the growth and adoption of cryptocurrencies in the region.