Hong Kong-Based Company Prepares to Launch Spot Bitcoin ETF!

  • According to a report published on January 19th, VSFG has announced plans to launch a spot Bitcoin ETF in the first quarter of the year.
  • The Securities and Futures Commission (SFC) has shown openness to evaluate applications for various funds, not limited to crypto futures ETFs.
  • On January 11th, eleven spot Bitcoin ETFs, including presentations from companies like BlackRock, BitWise, Grayscale, and ARK 21Shares, began trading in the United States.

Venture Smart Financial Holdings Limited, based in Hong Kong, has taken steps to launch a spot Bitcoin ETF.

VSFG Prepares for Spot Bitcoin ETF

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Venture Smart Financial Holdings Limited (VSFG), based in Hong Kong, is gearing up to launch a Bitcoin spot exchange-traded fund (ETF) pending approval from the Securities and Futures Commission (SFC), as reported in a January 19th release.

According to the report, VSFG has revealed plans to launch a spot Bitcoin ETF in the first quarter of the year. The company has also set a target of $500 million in assets under management (AUM) by the end of the year. However, as of now, VSFG has not yet submitted an ETF application to the SFC.

This recent development aligns with a joint announcement made by the SFC and the Hong Kong Monetary Authority (HKMA) on December 22, 2023. In the announcement, both institutions expressed readiness to evaluate applications for virtual asset spot ETFs, acknowledging the evolving landscape of virtual assets since 2018.

Hong Kong regulators initially adopted an approach focused on “professional investors only,” but they have seen a shift in perspective regarding retail exposure to digital assets. Regulatory authorities are now taking a more flexible approach to crypto asset regulation, reviewing policies affecting intermediaries involved in virtual asset activities.

In the context of these regulatory changes, the SFC has shown openness to evaluate applications for various funds, not limited to crypto futures ETFs.

Growth in the US ETF Market Sets the Pace for Hong Kong

While the SFC is prepared to authorize retail investor access to virtual asset spot ETFs, Hong Kong lags behind the United States in launching such products. The U.S. has already introduced eleven spot Bitcoin ETFs for trading, including presentations from companies like BlackRock, Bitwise, Grayscale, and ARK 21Shares.

Spot crypto ETFs provide investors with exposure to virtual assets without direct ownership of crypto tokens, creating collaboration opportunities with mainstream finance.

On January 11th, eleven spot Bitcoin ETFs, including presentations from companies like BlackRock, Bitwise, Grayscale, and ARK 21Shares, began trading in the U.S. Bitwise’s CEO, Hunter Horsley, announced on January 18th that the company’s flagship product, Bitwise Bitcoin ETF Trust (BITB), attracted an impressive $68 million in additional investments. Horsley highlighted that the additional investment increased the company’s total assets to $370 million in just four days.

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