Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based financial services firm, is gearing up to apply for a spot Ethereum exchange-traded fund (ETF) in the second quarter, aiming for a potential launch following its spot bitcoin ETF application in the first quarter.
In an interview with The Block on Friday, VSFG Chairman Lawrence Chu revealed that the firm is in the final phase of officially submitting its application for a spot bitcoin ETF to the Hong Kong Securities and Futures Commission.
Chu emphasized that extensive regulatory discussions typically precede the submission of an application in Hong Kong, indicating that they are nearing completion. “Submission [for application] is almost like when you’re 95% there,” he added.
The company’s plans for a spot Ethereum ETF hinge on the approval and listing of its spot bitcoin ETF in the first quarter. “But that really depends on the conversation we have with the regulator,” Chu explained. “We will be ready.”
Last month, Livio Weng, chief operating officer of Hong Kong crypto exchange HashKey, disclosed that around 10 fund companies have begun exploring potential spot crypto ETF launches in the city.
Chu highlighted the likelihood of a race to lower fees among asset managers in Hong Kong, mirroring trends observed in the U.S. “There will be a few [ETFs] that come out,” he said. “Our role is slightly nuanced because I think we’re also trying to help ETF issuers get into the game.”
He noted the differences between U.S. and Hong Kong ETF issuers, particularly in terms of digital asset teams. “In Hong Kong, there’s a bit of a licensing requirement but also a knowledge gap. Most ETF issuers don’t have a digital asset team,” Chu explained.
“From that point of view, you can think of us as more of a service provider to all ETF issuers,” he concluded.
