- Hong Kong is set to approve its first spot bitcoin exchange-traded fund (ETF), following the U.S. SEC’s lead in embracing crypto.
- The Harvest Hong Kong fund submitted the first spot bitcoin ETF application to Hong Kong’s Securities and Futures Commission (SFC) in late January. Approval is expected after the Chinese New Year.
- Hong Kong has created a supportive regulatory environment for crypto, with the SFC expressing openness to bitcoin ETFs even before the U.S. This milestone demonstrates Hong Kong’s commitment to crypto innovation.
Hong Kong is poised to approve its first spot bitcoin exchange-traded fund (ETF), following the footsteps of the U.S. Securities and Exchange Commission. This marks an important milestone for wider crypto adoption in Asia’s financial hub.
First Spot Bitcoin ETF Application Submitted
Harvest Hong Kong, one of China’s largest fund managers, submitted an application for a spot bitcoin ETF to the Hong Kong Securities and Futures Commission (SFC) on January 26. The regulator is working to expedite the approval process and launch Hong Kong’s first spot bitcoin ETF after the Chinese New Year holiday in early February.
While Harvest Fund was the first applicant, it likely won’t be the only one. Several other regional financial institutions have also signaled interest in launching spot bitcoin ETFs this year.
Hong Kong’s Supportive Regulatory Environment
Hong Kong has emerged as a leading crypto destination in Asia thanks to its progressive, pro-crypto regulations. In 2022, the SFC created a comprehensive crypto regulatory framework, allowing both institutional and retail investors to participate.
Even before the U.S. SEC approved spot bitcoin ETFs, Hong Kong’s SFC opened the door to crypto ETFs and expressed readiness to authorize digital asset funds. The regulator’s supportive approach has paved the way for this latest milestone.
Conclusion
The submission of Hong Kong’s first spot bitcoin ETF application demonstrates the region’s commitment to crypto innovation and adoption. With a growing number of financial institutions eager to launch spot bitcoin ETFs, 2023 is shaping up to be a landmark year for cryptocurrency acceptance in Hong Kong and beyond.
