First Bitcoin ETF Application Submitted to Hong Kong SFC

The Hong Kong Securities and Futures Commission (SFC) has reportedly received its inaugural application for a spot Bitcoin exchange-traded fund (ETF), coming just weeks after the United States Securities and Exchange Commission greenlit the first spot BTC ETF in the U.S.

Harvest Hong Kong, a major fund manager in China, submitted the application for a spot Bitcoin ETF to the Hong Kong SFC on January 26, as reported by Tencent News. The article notes that the regulatory body is actively working to streamline the approval process for ETFs, aiming to introduce the first spot Bitcoin ETF in Hong Kong post-Chinese New Year, scheduled for February 10.

The report suggests that the Hong Kong regulatory body might adopt a strategy similar to the U.S. SEC by approving multiple spot ETFs to ensure fair competition. While Harvest Fund is the first to file for a spot BTC ETF, it may not be the sole applicant, as several regional financial institutions have expressed interest in launching spot BTC ETFs in 2024.

As of January 19, a minimum of 10 financial institutions in the country are actively engaged in preparations to introduce a spot Bitcoin ETF. Prominent entities like Venture Smart Financial Holdings have already earmarked the first quarter of 2024 as their target for launching the spot ETF.

Several established cryptocurrency firms that previously introduced futures-based crypto ETFs in Hong Kong are also anticipated to join the ranks of applicants for spot Bitcoin ETFs. Samsung Asset Management, known for launching the Samsung Bitcoin Futures ETF in 2023, has reportedly expressed openness to exploring the launch of a spot ETF, stating that it does not rule out the possibility.

Hong Kong has solidified its position as a key cryptocurrency hub in Asia, owing to its regulatory stance favouring cryptocurrencies in 2023. In that year, the SFC established regulations tailored to the crypto sector, enabling both institutional and retail investors to engage in crypto-related activities. Even preceding the approval of the first spot BTC ETF by the U.S. SEC, the Hong Kong SFC had already paved the way for crypto-centric ETFs and signalled its willingness to receive applications for the approval of various funds, including digital asset spot ETFs and existing crypto futures ETFs.