Hong Kong-based VSFG intends to launch its spot BTC ETF in Q1 2024

The company’s goal is $500 million in assets under management by the end of this year

19.01.2024 - 11:52

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What’s new? Hong Kong-based Venture Smart Financial Holdings (VSFG) plans to apply to the local Securities and Futures Commission (SFC) to launch a spot bitcoin exchange-traded fund (ETF) and expects to receive approval as early as this quarter. The regulator opened accepting applications for such products in late December. Brian Chan, VSFG’s head of investment and product, called the spot BTCETF market promising and added that the company’s goal is $500 million in assets under management (AUM) by the end of this year.

Bloomberg’s material

What else is known? Cryptocurrency futures ETFs are allowed in Hong Kong, and so far three such funds have been listed on the exchange: the CSOP Bitcoin Futures, CSOP Ether Futures, and Samsung Bitcoin Futures. Their combined AUM is about $50 million.

Samsung Asset Management also said in a comment to Bloomberg that it wouldn’t “eliminate the possibility of exploring to launch a spot ETF.”

Aegis Custody, a crypto custodian, is in talks with four asset managers about listing spot ETFs in Hong Kong, CEO Serra Wei said. He said the city’s regulatory requirements would likely result in issuers charging higher fees compared with the low management fees for spot bitcoin ETFs in the US.

Victory Securities’ top executive allowed the possibility of approving spot crypto ETFs in Hong Kong during Q1

A representative of Victory Securities said that local brokers are already preparing for filings

In September, the first spot crypto ETF was launched in Europe. The bitcoin fund from Jacobi Asset Management is traded on Euronext Amsterdam under the ticker BCOIN.

On January 11, 11 spot BTC ETFs were admitted to the US market. Already on January 16, their total daily trading volume surpassed the figure of five hundred exchange-traded funds launched last year. Two days later, bitcoin surpassed silver and became the second-largest commodity ETF in the United States.

In turn, the Central Bank of Singapore refused to allow such products on the local market but allowed retail investors to trade shares of foreign crypto ETFs through licensed brokers.

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