HashKey Identifies Bitcoin ETF Aspirants in Hong Kong

Approximately ten financial firms in Hong Kong are exploring the launch of spot Bitcoin ETFs, according to an interview with Caixin by Livio Weng, COO of the cryptocurrency exchange HashKey.

He noted that potential issuers include companies with Chinese capital, as well as firms from other parts of Asia and Europe.

Seven or eight of these companies have already begun consultations with the Hong Kong Securities and Futures Commission (SFC) and have formed teams to develop products.

In December 2023, regulators in the jurisdiction opened the door for the launch of exchange-traded crypto funds based on spot prices.

In a joint circular, the SFC and the Hong Kong Monetary Authority announced a policy review concerning intermediaries in the virtual currency market. The Commission stated its readiness to accept registration applications for other funds with access to cryptocurrencies, beyond the existing futures ETFs.

The SFC set specific requirements for spot exchange-traded products, including the use of tokens exclusively from listings on platforms licensed in Hong Kong.

The COO of HashKey told The Block that the exchange might participate in potential crypto ETFs as a trading platform and custodian. In August 2023, the company received an SFC license to provide trading services for institutional and retail clients.

In the United States, applicants for the launch of 11 spot Bitcoin ETFs submitted final amendments to their applications to the SEC earlier this year.

On January 9, a message appeared on the regulator’s X account claiming approval of all products. The head of the agency, Gary Gensler, denied the information and stated that the account had been hacked.