Hong Kong plans to release a spot Bitcoin ETF this year
Hong Kong is projected to launch its first Bitcoin spot ETF in mid-2024, according to Gary Tiu, the executive director and head of regulatory affairs at OSL, a licensed crypto exchange based in Hong Kong (January 22).
Tiu highlighted that around five to ten companies are actively exploring the launch of Bitcoin ETFs.
"These ETFs offer several significant benefits, including promoting a regulated market for the underlying digital assets, establishing a model for local investor protection, and accelerating integration between regulated digital asset platforms and traditional financial institutions," he said, as reported by The Block.
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Tiu's comments come after HashKey, a licensed crypto exchange in Hong Kong, expressed similar sentiments earlier this month. Livio Weng, COO of HashKey, noted that about ten fund companies are considering launching crypto spot ETFs in the region.
Adding momentum to this development, Venture Smart Financial Holdings plans to launch a Bitcoin spot ETF in the first quarter of 2024 with a target of managing assets worth $500 million by the end of the year.
According to local Hong Kong media reports, current market players, including Samsung Asset Management and CSOP Asset Management, are closely monitoring the developments of spot ETFs to assess market demand and regulatory conditions before venturing into these investment instruments.
Hong Kong Authorities Consider Spot ETFs
Image: SFC logo (on the left), introduced in 2018 Source: Wikipedia
Meanwhile, the Securities and Futures Commission of Hong Kong (SFC) and the Hong Kong Monetary Authority have issued two circulars discussing the requirements for crypto spot ETFs.
The SFC noted in its circular that crypto transactions conducted by crypto spot ETFs must be carried out through SFC-licensed crypto platforms or official financial institutions.
Hong Kong has currently registered several crypto futures ETFs, namely: Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF.
If the crypto spot ETFs are officially traded in Hong Kong, it would be a strategic move for the more innovative and secure crypto asset sector. Hong Kong's step could potentially be emulated by other countries, ultimately leading to global adoption of crypto ETFs.
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