Q1 will witness the launch of a spot Bitcoin ETF by Venture Smart Financial
Venture Smart Financial Holdings Limited, a financial services company based in Hong Kong, plans to launch its spot Bitcoin exchange-traded fund (ETF) in the city during Q1. Brian Chan, the group head of investment and product at Venture Smart Financial, revealed in an interview with Bloomberg that the company aims to have up to $500 million in assets under management by the end of 2024, acknowledging the significant potential in the market.
So far, Hong Kong regulators have only approved three futures Bitcoin ETFs: Samsung Bitcoin Futures, CSOP Bitcoin Futures, and CSOP Ether Futures. In late December 2023, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly announced their readiness to consider applications for the authorization of funds with exposure to cryptocurrencies, including spot ETFs.
A spokesperson for Samsung Asset Management stated that the company does not rule out the possibility of launching a spot crypto ETF, but the specific timeframe for filing in the region remains uncertain.
Hong Kong Legislative Council member Johnny Ng recently called for the city to encourage innovation in the crypto space, highlighting the region’s readiness to lead in Asia through the implementation of relevant policies and products. Ng particularly emphasized the importance of establishing Hong Kong as a global hub in the virtual asset sector, citing the industry’s rapid developments and competitive nature.
According to crypto.news, the SFC’s updated guidelines allow for both in-kind and in-cash subscription and redemption processes for spot ETFs. Management companies are instructed to transfer cryptocurrencies to the custody accounts of SFC-authorized providers, with valuation based on an indexing approach using trade volume data from major crypto trading platforms.
Hong Kong’s decision to approve spot Bitcoin ETFs aligns with the U.S. Securities and Exchange Commission’s approval of all applications for such funds. However, SEC Chair Gary Gensler clarified in a statement that the agency did not approve or endorse Bitcoin.
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