Hong Kong firm ready to launch Bitcoin ETF
Hong Kong firm ready to launch Bitcoin ETF
Hong Kong-based financial firm Venture Smart Financial Holdings Ltd. (VSFG) intends to launch the first Bitcoin ETF as early as the first quarter of 2024. This is supported by Hong Kong's policy to become a global center for the development of digital services.
In December, the Securities and Futures Commission made recommendations on the terms and conditions of spot exchange-traded funds (ETFs) and recommended their approval. In response, VSFG said it was preparing to apply to launch a BTC ETF, Bloomberg reported.
Commenting on the company's decision, VSFG Chief Investment Officer Brian Chan said, "We believe this is a market with great potential. Our goal is to reach $500 million in inflows by the end of the year.
Bitcoin ETFs have made a revolutionary breakthrough in the US, with major issuers BlackRock and Fidelity Investments receiving $2 billion in investments in their new products. Meanwhile, all launched Bitcoin ETFs have attracted over $10 billion in investments.
Currently, crypto ETF futures are permitted in Hong Kong. Three funds are traded: CSOP Bitcoin Futures, CSOP Ether Futures, and Samsung Bitcoin Futures. At the same time, their total assets reached only $50 million.
VSFG is not the only company planning to launch spot Bitcoin ETFBs. Samsung Asset Management is also "not ruling out the possibility of launching a spot ETF".
The regulator, the Securities and Futures Commission (SFC), said it will follow guidelines released in December when deciding whether to approve an ETF. The approval process for new Bitcoin products is expected to take a few weeks to a few months.
VSFG currently provides access services to traditional and digital assets and is one of the leading virtual asset managers and SFC-approved funds.
It is worth noting that the launch of the Bitcoin ETF in the US has not changed the negative opinion of the South Korean regulator, which remains opposed to virtual assets. South Korea has officially asked the regulator to prevent the introduction of spot Bitcoin ETFs. This is due to concerns that trading and investing in Bitcoin products would violate local laws.
Hong Kong has its own particularities. Regulatory standards are likely to force issuers to charge higher fees, compared to the low management fees in the US.
See also: BlackRock's Bitcoin ETF is first to hit $1 billion in inflows
