- Hong Kong-based firm VSFG plans to file a spot Bitcoin ETF application.
- The firm said Hong Kong has a lot of market potential for a spot Bitcoin ETF.
- Last December, Hong Kong’s regulator released a guideline for spot crypto funds.
Venture Smart Financial Holdings Ltd., a Hong Kong-based financial services company, plans to launch the region’s first spot Bitcoin exchange-traded fund (ETF), Bloomberg reported. The firm stated that it intends to file an application with Hong Kong’s Securities and Futures Commission (SFC) to launch the ETF. This move follows a guideline release from the regulator for spot crypto fund approval in the region.
According to Brian Chan, group head of investment and product at the firm, a spot Bitcoin ETF launch in Hong Kong has a lot of potential. “Our goal is $500 million in assets under management by the end of this year,” the executive remarked.
Importantly, the firm’s push underscores several institutions’ recent efforts to launch spot Bitcoin ETFs in their regions after the funds went live in the US. Earlier this month, the US Securities and Exchange Commission (SEC) approved nearly a dozen spot Bitcoin ETF applications.
In the buildup to the approvals, the flagship cryptocurrency doubled in price and notched new highs. However, since the approval, Bitcoin’s value has been in the bearish region, especially as investors take the sidelines to assess the success of the launches.
In Hong Kong, futures-based crypto ETFs are currently allowed. Per the Bloomberg report, there are three such funds listed so far within the region: CSOP Bitcoin Futures, CSOP Ether Futures, and Samsung Bitcoin Futures. The funds have garnered over $50 million in assets since their launches.
Meanwhile, VSFG isn’t the only firm eyeing a dabble in the spot crypto fund space. Samsung Asset Management, one of the firms offering futures-based ETFs, said it wouldn’t “eliminate the possibility of exploring to launch a spot ETF.”
Likewise, digital asset custodian Aegis Custody is in discussions with four asset managers on the listing of spot cryptocurrency products in Hong Kong, according to the company’s CEO, Serra Wei. Should the funds see approval, Wei estimates issuers may have to charge higher fees because of Hong Kong’s regulatory requirements.
As noted in the report, the SFC said it had no comments beyond the earlier released guidelines. However, given the extended timeline seen in traditional ETF applications, approving a spot ETF in the region could take weeks or months.
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