According to HashKey, approximately 10 hedge funds are gearing up to introduce spot crypto ETFs in Hong Kong.

Nearly a dozen hedge funds are preparing to submit applications for spot crypto exchange-traded funds (ETFs) in Hong Kong, as the city moves closer to becoming the first in Asia to allow the listing of these financial products. In an interview with Chinese news outlet Caixin, HashKey Group COO Livio Weng confirmed that around eight of these hedge funds are already in the “actual advancement stage.” The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued a joint circular in December 2023, acknowledging the growing interest in spot crypto ETFs and expressing readiness to accept applications for funds with exposure to cryptocurrencies. While Hong Kong has already approved futures crypto ETFs, it remains cautious about the broader crypto market. In late December 2023, the Financial Services and the Treasury Bureau (FSTB) and the HKMA stated that retail investors can purchase stablecoins, but issuers must obtain a special HKMA license and meet various requirements, including maintaining reserves matching the face value and establishing a physical presence in Hong Kong.