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Hong Kong’s Approval of Spot Bitcoin ETFs
Hong Kong’s securities regulator is set to approve the first batch of Spot Bitcoin ETFs on April 15, with availability expected to follow approximately two weeks after approval, as reported by Tencent News. Financial analysts project that the first Spot Bitcoin ETF in Hong Kong could reach a size of $20 billion, albeit smaller than similar products in the US.
Authorized Fund Companies
The Securities and Futures Commission (SFC) updated the list of authorized fund companies ahead of the approval announcement, including Chinese asset managers Harvest Global Investment and China Asset Management. This enables them to issue crypto-related fund products, including Spot Bitcoin ETFs. Harvest Global Investment submitted the ETF application on January 26, with discussions already underway for listing on the Hong Kong Stock Exchange.
Hong Kong’s Standards for Spot Bitcoin ETF Market
In December, Hong Kong signaled its approval of Spot Bitcoin ETFs, aligning with trends in the US. The SFC, in collaboration with the Hong Kong Monetary Authority (HKMA), announced their readiness to accept applications for virtual asset products, establishing clear guidelines for intermediaries involved in fund distribution. The SFC emphasized that spot crypto investment products must meet stringent regulatory requirements similar to traditional mutual funds and structured investment products.
- Product issuers must demonstrate strong regulatory compliance history.
- At least one qualified staff member with relevant experience in managing virtual assets is required.
- No leveraged exposure is permitted.
- Issuers must work with pre-approved exchanges for all asset trading and acquisition activities.
Fund Managers’ Response
Leaders in Hong Kong’s crypto industry see the SFC’s actions positively, with around 10 fund management companies actively preparing to launch Spot Bitcoin ETFs. Despite growing openness to digital assets, Hong Kong maintains stringent regulations in this sector.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
