Hong Kong Financial Services Firm Unveils Plans to Launch Region’s Premier Spot Bitcoin ETF Hong Kong-based Venture Smart Financial Holdings Limited
(VSFG) is gearing up to seek approval from the Securities and Futures Commission (SFC) for the introduction of a Bitcoin spot exchange-traded fund
(ETF). According to a Bloomberg report on January 19, VSFG disclosed its plans to launch a spot Bitcoin ETF within the first quarter of the year. The company also set an ambitious target of reaching
$500M 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 latest development
is in line with the joint announcement made by the SFC and Hong Kong Monetary Authority (HKMA) on December 22, 2023. In the announcement, both agencies expressed their preparedness
to consider applications for virtual asset spot ETFs, acknowledging the evolving landscape of virtual assets since 2018. Hong Kong regulators initially followed
a “professional-investors only” approach but have witnessed a shift in perspective on retail exposure to digital assets. The regulatory bodies
have now adopted a more flexible approach to cryptocurrency regulation, with a review of their policy regarding intermediaries engaged
in virtual asset-related activities. As part of this regulatory shift,
the SFC has shown openness to considering applications for the authorization of various funds, not limited to crypto futures ETFs.
