The first set of spot Bitcoin ETFs will be available for trading in Hong Kong by the month end after the Hong Kong Securities Regulatory Commission gives a green light this week.
As per the latest development, the Hong Kong Securities and Futures Commission (SFC) is now gearing up to greenlight spot Bitcoin ETFs in the region. Earlier today, April 10, the SFC updated the list of virtual asset management companies on its website including – Harvest International, Boshi Fund, China Asset Management, and Value Partners Financial.
These four companies have been at the forefront of the crypto revolution taking place in Hong Kong and would be responsible for introducing spot Bitcoin ETFs for their institutional and retail clients. Moreover, earlier this year on January 26, Harvest International was the first to submit the application for spot Bitcoin ETF. It was also among the first public funds to enter the “currency circle” asset management.
Now, two months later, Harvest International has been qualified for “currency circle” asset management, reports Tencent Finance’s “First Line”. The report further added that the Hong Kong Securities Regulatory Commission has recently updated the list of its crypto management funds and plans to approve the first spot Bitcoin ETF by April 15.
Previously, the Hong Kong Securities Regulatory Commission was planning to approve a total of four spot Bitcoin ETFs. However, apart from Harvest International and China Asset Management, the other two players – Boshi Fund and Value Partners Financial – haven’t appeared in the regulator’s list of virtual asset management funds. Also, Boshi and Value Partners do not meet the criteria to enter the “currency circle”.
Riding the Spot Bitcoin ETF Wave
The launch of the spot Bitcoin ETFs in the United States has been a massive success with more than $12.3 billion in inflows just within the first three months. Citing strong demand, the top financial players in Hong Kong have accelerated their applications.
For example, China Asset Management’s team applied for the spot Bitcoin ETF last month in March. As per the local news publication, the process for submitting a Bitcoin spot ETF in Hong Kong entails collaboration with a minimum of 20 partner institutions. These include Bitcoin custodians, market makers, and entities with comprehensive virtual asset trading accounts.
Adhering to Hong Kong’s application procedures and communication protocols strictly, it’s improbable for any institution in Hong Kong to compile all necessary application materials within approximately two weeks.
Even if the Hong Kong Securities Regulatory Commission approves the first batch of spot Bitcoin ETFs by April 15, it will take two more weeks for the Hong Kong Stock Exchange to prepare for product listings. Thus, the first spot Bitcoin ETFs in Hong Kong would be available for trading by the end of April.
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