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

12.01.2024 - 13:21

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What’s new? Pui Chuen Chan, the executive director of virtual asset brokerage Victory Securities, has revealed that Hong Kong stock firms are preparing to submit applications to launch bitcoin-based spot exchange-traded funds (ETFs). Some of them could be approved as early as the first quarter of 2024, he said. The top executive sees the launch of such products in the US as a way to create a link between cryptocurrencies and stock exchanges, which will attract more investors to participate in the market.

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What else is known? Chuen noted that many investors are hesitant to invest in digital currency directly due to an inability to adapt to a new way of investing or concerns about losing deposits.

Hong Kong’s Securities and Futures Commission (SFC) will require local crypto ETF issuers to use platforms with local licenses and insurance. This could lead to more brokerage firms applying to the SFC for licenses to trade virtual assets, Chuen predicted.

The SFC began accepting applications for spot crypto ETFs in late December. At the start of the new year, Livio Weng, chief operating officer of Hong Kong licensed crypto exchange HashKey, said that about a dozen companies were already preparing to launch such products in Hong Kong.

Later, Johnny Ng, a member of Hong Kong’s Legislative Council, called for the approval of spot BTC ETFs on the local market as soon as possible. In his opinion, this move, along with other legislative and educational initiatives, will allow the city to become a global crypto hub.

The total trading volume of ten spot bitcoin ETFs in the United States exceeded $4,5 billion on the first day of launch. Half of this amount came from Grayscale’s exchange-traded fund.

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