According to a report from Tencent News, Hong Kong’s securities regulator is aiming to greenlight the first batch of Spot Bitcoin ETFs on April 15. However, these ETFs are anticipated to become available approximately two weeks after receiving approval. Financial analysts are estimating that the inaugural Spot Bitcoin ETF in Hong Kong could amass around $20 billion, though this would be smaller in scale compared to similar offerings in the US.
Ahead of the impending approval announcement on April 15, the SFC (Securities and Futures Commission) purportedly updated its roster of authorized fund companies, which now includes Chinese asset managers Harvest Global Investment and China Asset Management. This inclusion grants them the capacity to introduce crypto-related fund products, including Spot Bitcoin ETFs. Harvest Global Investment submitted its ETF application on January 26. Discussions regarding the listing of these ETFs with the Hong Kong Stock Exchange have reportedly already commenced.
Hong Kong Sets Standards for Spot Bitcoin ETF Market
In December, Hong Kong demonstrated its willingness to approve Spot Bitcoin ETFs, mirroring recent developments in the US. The Securities and Futures Commission (SFC) partnered with the Hong Kong Monetary Authority (HKMA), announcing their preparedness to accept applications for these virtual asset products.
Moreover, they established clear guidelines for intermediaries involved in distributing these funds. They underscored that spot crypto investment products must meet the same rigorous requirements as traditional mutual funds and other structured investment products established by Hong Kong regulators.
The SFC also outlined that product issuers must demonstrate a history of robust regulatory compliance. Furthermore, they must employ at least one qualified staff member with relevant experience in managing virtual assets or similar products.
Additionally, the regulator stated that these products would not be permitted to utilize leveraged exposure. Furthermore, issuers are required to collaborate with pre-approved exchanges for all asset trading and acquisition activities.
10 Fund Managers Eye Spot Bitcoin Launch
The recent actions taken by Hong Kong’s Securities and Futures Commission (SFC) are being viewed positively by leaders in the crypto industry. These leaders see it as a step forward toward the introduction of Spot Bitcoin ETFs. Livio Weng, the COO of HashKey Group, revealed earlier this year that approximately 10 fund management companies were actively gearing up to launch Spot Bitcoin ETFs in Hong Kong.
Despite this growing openness to digital assets, Hong Kong continues to uphold its reputation for imposing stringent regulations within the sector.
