Media: Hong Kong regulator may approve spot crypto ETFs after February 10

The first application to launch such a product came from Chinese investment company Harvest Fund

29.01.2024 - 09:56

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3 min

What’s new? The Hong Kong arm of Harvest Fund, one of the PRC’s largest asset management companies, was the first to file an application with the local Securities and Futures Commission (SFC) to launch a spot bitcoin exchange-traded fund (ETF). The SFC began accepting applications for crypto ETFs late last year and, according to Tencent News, is actively working to speed up the approval process. The first such product could hit the market as soon as after the Chinese New Year, the celebration of which begins on February 10.

Material by Tencent News

What else is known? SFC head Julia Leung said earlier that the agency welcomes innovative technologies that improve the efficiency and quality of customer service. At the same time, the regulator will allow only licensed companies to launch crypto ETFs, as such products carry risks for retail investors due to the opaque pricing mechanism and the possibility of market manipulation.

In early January, the senior executive of the first licensed crypto exchange in Hong Kong, HashKey Livio Weng, reported that about a dozen companies were preparing to launch crypto ETFs. Later, Pui Chuen Chan, executive director of virtual asset brokerage Victory Securities, said that such products could be approved as early as Q1.

Johnny Ng, a member of Hong Kong’s Legislative Council, noted that early admission of such products would allow the city to become a global crypto hub.

OCX and the operator of the HashKey exchange to develop the blockchain infrastructure in Hong Kong

Previously, OKX’s venture capital division also participated in HashKey’s $100 million funding round

According to Tencent News, the SFC may adopt the US Securities and Exchange Commission’s (SEC) approach and approve multiple applications simultaneously to ensure a level playing field.

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