This month's bitcoin ETF (Exchange Traded Fund) spot approval by the US Securities and Exchange Commission (SEC) marked a historic and significant moment for the adoption of btc and cryptocurrencies.
The event opened up new investment possibilities for companies and traditional investors, leading several asset managers around the world to evaluate their chances of launching bitcoin ETFs in their specific regulatory environments.
Hong Kong Firm Aims for bitcoin Spot ETF Approval
Following the approval of these investment products in the US, Hong Kong's Securities and Futures Commission (SFC) for the first time published guidelines for the approval of crypto spot funds, which could boost its efforts to develop a ” more accessible digital asset hub.
Since the publication of the SFC circular in December 2023, Hong Kong financial services firms have been weighing their options for launching a spot bitcoin ETF.
Among them, Venture Smart Financial Holdings Ltd., also known as VSFG, has expressed its intention to file an application with the SFC to launch its ETF this quarter, as well as bitcoin–btc-etf-launch-in-first-quarter?srnd=markets-vp” target=”_blank” rel=”noopener nofollow”>reported by Bloomberg.
VSFG Group Head of Investment and Products Brian Chan expressed his views and VSFG's 2024 goals regarding spot ETFs: “It's a market that has huge potential,” he told the news site, “our goal is $500 million in assets under management. by the end of the year.”
Since the SFC announced allowing futures-based crypto ETFs in October 2022, Hong Kong has listed three ETFs: Samsung bitcoin Futures, CSOP bitcoin Futures, and CSOP Ether Futures. They have a combined asset estimate of $50 million.
According to the report, Samsung Asset Management would not “eliminate the possibility of exploring the launch of a spot ETF.”
Similarly, Aegis Custody CEO Serra Wei stated that the digital asset custodian is in talks with four asset managers about listing spot crypto products in Hong Kong. Wei noted that due to Hong Kong's regulatory requirements, spot ETF issuers are likely to charge higher management fees compared to their US counterparts.
Although CSOP Asset Management did not respond to Bloomberg's request for comment, Bloomberg Intelligence ETF analyst Rebecca Sin believes CSOP “could lead the race in Asia Pacific” for digital asset spot ETFs, as CSOP products The company “accounts for the majority of funds managed in the current futures-based digital asset ETFs in Hong Kong.”
crypto Regulatory Landscape in Hong Kong
Recently, Hong Kong has been implementing a strategy to gain a stronger position in the global financial sector. It has adopted a more cryptocurrency-friendly regulatory approach than China's central government by reviewing and updating existing regulatory policies to better fit the current financial landscape.
The SFC further elaborated on its new approach in its recent joint circular with the Hong Kong Monetary Authority (HKMA), stating:
When the SFC formulated its regulatory approach to virtual assets in 2018, it imposed a blanket “professional investors only” restriction on several types of activities, including the distribution of funds that invest in virtual assets. Since then, the virtual asset landscape has evolved rapidly and has begun to expand into mainstream finance. A wider range and greater number of investment products are now available, offering retail and professional investors exposure to virtual assets.
Some of the SFC's changes now allow licensed virtual asset trading platforms to serve retail investors and have authorized virtual asset futures exchange-traded funds for public offering in Hong Kong, with the latest review introducing unguided options that could allow the launch of spot operations. crypto ETFs.
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bitcoin is trading at $41,313.8 in the hourly chart. Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, chart from TradingView.com
