Hong Kong-based asset manager VSFG, in partnership with Value Partners, has submitted an application for a spot Bitcoin exchange-traded fund (ETF) with the Securities and Futures Commission (SFC) of Hong Kong. Brian Chan, Head of Investment and Products at VSFG, confirmed the application in a statement to CoinDesk on Wednesday.
The move comes in response to recent developments indicating a growing interest in spot Bitcoin ETFs in the region. A report from Bloomberg Intelligence suggested that the SFC is likely to permit in-kind creations and redemptions for such ETFs in the second quarter of this year.
This initiative follows an announcement in December 2023, where Hong Kong regulators expressed readiness to consider applications for spot crypto ETFs, shortly after nearly a dozen applicants received approval for spot Bitcoin ETFs in the United States.
In January, Harvest Global Investments made headlines by reportedly becoming the first company to apply for a spot Bitcoin ETF with the SFC. Additionally, reports indicate that up to 10 financial institutions are planning to launch Bitcoin ETFs in Hong Kong, demonstrating a significant interest in this emerging asset class.
Bloomberg reports that Venture Smart Financial Holdings, another company headquartered in Hong Kong, has revealed its plans to submit an application for a spot Bitcoin ETF. Hong Kong regulators’ efforts to embrace cryptocurrencies and foster a conducive environment for innovation reflect their ambition to position the region as a global hub for the crypto sector.