Hong Kong Seeks Approval for Bitcoin Spot ETF
Date: 2024-01-29 Author: Dima Zakharov Categories: IN WORLD
Hong Kong's Move Towards a Bitcoin Spot ETF
In an exciting development, the Hong Kong-based subsidiary of Harvest Fund Management, a major Chinese asset manager, has formally requested approval from the Securities and Futures Commission (SFC) to introduce a Bitcoin spot ETF. This news, reported by Tencent News, has generated significant interest in the crypto community.
Regulatory Approval Timing
According to Tencent News, the regulator may grant approval for the product's listing following the conclusion of Lunar New Year celebrations on February 15th. It's worth noting that SFC might take a cue from the U.S. SEC and approve multiple applications for similar instruments simultaneously. As of now, there are no other applicants in line.
Growing Interest in Bitcoin ETFs
In January, COO of HashKey, Livio Weng, mentioned that around ten companies in Hong Kong are exploring the possibility of launching Bitcoin spot ETFs. This indicates a growing trend in the region towards embracing cryptocurrency-based exchange-traded funds.
Unique Features of SFC's Approach
Sources have revealed that SFC is considering permitting the redemption of fund units in cryptocurrency, a departure from the SEC's approval, which only allows redemptions in cash.
The Future of Cryptocurrency Regulation in Hong Kong
The situation becomes more intriguing as Bloomberg reported in September that Harvest, RD Technologies, and VSFG were in discussions with the Hong Kong Monetary Authority (HKMA) regarding potential pilot projects involving stablecoins. Sean Lee, Senior Advisor and Head of the Stablecoin Division at VSFG, predicted the launch of a regulatory sandbox in Q1 2024.
HKMA is expected to introduce mandatory licensing for stablecoin issuers throughout 2023-2024. The regulator intends to oversee the management, issuance, and maintenance of tokens pegged to fiat currencies.
To recap, this move by the Hong Kong division of Harvest Fund Management could pave the way for broader adoption of Bitcoin and other cryptocurrencies in the financial markets. The cryptocurrency community eagerly awaits the SFC's decision regarding the Bitcoin spot ETF proposal.
