Hong Kong Seeks Approval for Spot Bitcoin ETF

The Hong Kong branch of China’s asset management firm, Harvest Fund Management, has submitted a proposal to the Securities and Futures Commission (SFC) to launch a spot bitcoin ETF, according to Tencent News.

The publication notes that the regulator may permit the listing of the product after the Lunar New Year celebrations conclude on February 15.

Sources told Tencent News that the SFC might adopt a strategy similar to that of the SEC, by approving several applications for the instrument at once. Currently, there are no other applicants.

In January, HashKey’s COO Livio Weng noted that about a dozen companies in Hong Kong are exploring the possibility of launching spot bitcoin ETFs.

Sources also indicated that the SFC might allow the redemption of ETF shares in cryptocurrency, a stance differing from the SEC, which has approved this process only in cash.

On September 29, Bloomberg, citing informed sources, reported on the collaboration between Harvest, RD Technologies, and VSFG with the Hong Kong Monetary Authority (HKMA) regarding potential stablecoin pilot projects.

In a comment to The Block, Sean Lee, senior advisor and head of the “stablecoins” division at VSFG, predicted the launch of a regulatory sandbox in the first quarter of 2024.

The HKMA is expected to introduce mandatory licensing for stablecoin issuers during 2023-2024. The regulator plans to oversee the management, issuance, and maintenance of token-to-fiat pegs.

Back in November, ForkLog reported that the SFC was considering granting retail investors access to spot bitcoin ETFs.