Crypto Milestone: Hong Kong SFC Evaluates Historic Application For First Bitcoin Spot ETF

The Hong Kong Se­curities and Futures Commission (SFC) reporte­dly received the­ir first application for a Bitcoin exchange-traded fund, also known as an ETF. This significant e­vent occurred only a short time afte­r the U.S. Securities and Exchange­ Commission gave the gree­n light to the first U.S. Bitcoin ETF.

Harvest Hong Kong, a prominent fund manager in China, formally submitted its application for a spot in the Bitcoin ETF to the Hong Kong SFC on Jan 26, as reported by Tencent News. The news source also mentioned that the regulatory authority is actively streamlining the approval process for ETFs within the country to launch the inaugural Hong Kong spot Bitcoin ETF shortly after the Chinese New Year on Feb 10.

The report suggests that the Hong Kong regulatory body may adopt a strategy akin to the U.S. SEC, approving multiple spot ETFs to ensure fair competition. However, While Harvest Fund is the first to file for a spot BTC ETF, others may follow suit, with various regional financial institutions expressing their intent to introduce spot BTC ETFs in 2024.

According to the latest update on Jan 19, a minimum of 10 financial institutions in the nation are actively engaged in the development of a spot BTC ETF. Notably, industry-heavyweight Venture Smart Financial Holdings has earmarked the first quarter of 2024 for the anticipated launch of the spot ETF.

Hong Kong’s Crypto Revolution: Spot Bitcoin ETF Gain Momentum

Moreover, Numerous crypto firms that introduced futures-centric crypto ETFs in Hong Kong are anticipated to join the ranks of those applying for spot Bitcoin ETFs. In 2023, Samsung Asset Management, the Samsung Bitcoin Futures ETF creator, indicated a willingness to explore the possibility of launching a spot ETF.

Hong Kong has positioned itself as a prominent cryptocurrency hub in Asia, owing to its regulatory embrace of crypto initiatives in 2023. The Securities and Futures Commission (SFC) established crypto-specific regulations, enabling institutional and retail investors to engage in crypto-related activities.

Additionally, Preceding the approval of the inaugural spot BTC ETF by the U.S. Securities and Exchange Commission (SEC), the Hong Kong SFC paved the way for crypto-focused ETFs. However, It expressed its preparedness to receive applications for the authorization of diverse funds, encompassing digital asset spot ETFs and existing crypto futures ETFs.

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