Signaling an improvement in the already positive Hong Kong Bitcoin stance, the country’s Securities and Futures Commission (SFC) has reportedly received its inaugural application for a spot Bitcoin Exchange-Traded Fund (ETF), mirroring the recent approval by the U.S. Securities and Exchange Commission (SEC) for the first spot Bitcoin ETF in the United States.
Harvest Hong Kong, a major Chinese fund manager, officially submitted its spot Bitcoin ETF application to the SFC on January 26, as disclosed by Tencent News. Bloomberg reports that the company is also meeting with regulators on the city’s stablecoin sandbox.
According to the report, the SFC is actively streamlining the approval process for bitcoin-linked ETFs in Hong Kong. Interestingly, the regulator reportedly aims to debut the first spot Bitcoin ETF in the region shortly after the Chinese New Year on February 10.
Major Financial Institutions Signal Interest
Sources suggest that the Hong Kong regulatory authority might adopt a strategy akin to the U.S. SEC by greenlighting multiple spot ETFs on the same day to foster fair competition. Although Harvest Fund is the initial contender to propose a spot Bitcoin ETF, other financial institutions in the region are signaling their intent to enter the space this year, indicating a potential wave of applications.
Local reports indicate that at least 10 major fund managers in the region are gearing up to introduce bitcoin spot ETFs in Hong Kong. RJ Ke, a researcher affiliated with the renowned startup Taiko, recently predicted an acceleration in Bitcoin ETF applications in the region following the successful launch of spot Bitcoin ETFs in the United States on January 11.
Major players, including Venture Smart Financial Holdings, have already set their sights on the first quarter of 2024 as the target period for launching spot ETFs.
Moreover, several existing digital asset companies that have previously introduced futures-based digital asset ETFs in Hong Kong are expected to join the ranks of spot Bitcoin ETF applicants. Samsung Asset Management, which launched the Samsung Bitcoin Futures ETF in 2023, has not ruled out the possibility of exploring a spot ETF.
Hong Kong Bitcoin Stance
Hong Kong’s proactive stance on digital asset regulation in 2023 has positioned the region as a prominent bitcoin destination in Asia. The SFC implemented comprehensive digital asset-focused regulations, enabling both institutional and retail investors to engage in digital asset activities.
It is important to note that even before the U.S. SEC granted approval for the inaugural spot Bitcoin ETF, the Hong Kong SFC had impressively established a framework to accommodate such ETFs. It has expressed its willingness to accept applications for the authorization of various funds, including digital asset spot ETFs and existing futures ETFs.
This development underscores Hong Kong’s commitment to fostering a conducive environment for digital asset investment and innovation.
Hong Kong has recently seen massive bitcoin adoption. According to the report by the Investor and Financial Education Council (IFEC) of Hong Kong, nearly 25% of adults aged 18–29 in Hong Kong have invested in digital assets in the past year, which is three times the demographic average.
