Hong Kong Receives First Application for Spot Bitcoin ETF from Harvest Hong Kong

Hong Kong is now considering its very first application for a spot Bitcoin ETF, a significant step in the city-state's financial sector.

The application was reportedly filed by Harvest Hong Kong, a leading Chinese fund management firm, with the  the Securities and Futures Commission (SFC) on January 26. This move comes shortly after Hong Kong’s financial regulators, the SFC and the Hong Kong Monetary Authority (HKMA), indicated their openness to such financial products, albeit with stringent conditions. These conditions include strict custody rules and requirements for ETF transactions to be conducted through SFC-licensed crypto platforms or authorized financial institutions adhering to HKMA’s regulations.

Harvest Hong Kong's prompt application signals strong market interest and readiness for spot ETFs, mirroring the enthusiasm seen in the U.S. market. These ETFs are viewed as crucial for incorporating cryptocurrencies into mainstream finance and tapping into the growing regional demand.

Hong Kong's regulatory bodies appear keen to fast-track the approval of ETF applications, with potential listings on the Hong Kong Stock Exchange possibly following the Chinese New Year on February 10. This proactive stance echoes the SEC) recent approvals of multiple ETFs from major financial players like BlackRock and Fidelity, after years of hesitation.

Despite the interest from various financial institutions, Harvest Hong Kong remains the sole applicant to date. However, reports suggest that up to ten firms, including HashKey, Venture Smart Financial Holdings, Samsung Asset Management, and CSOP Asset Management, are considering launching their own spot Bitcoin ETFs in Hong Kong.

CryptoSlate