The Hong Kong Securities and Futures Commission is reportedly ready to approve a spot Bitcoin exchange-traded fund, signaling a major breakthrough for the Hong Kong cryptocurrency market.
Tencent News, citing multiple sources close to the Hong Kong Securities and Futures Commission, said the city is preparing to approve the region’s first spot Bitcoin ETF by April 15. According to reports, Hong Kong regulators initially planned to approve only four spot Bitcoin ETFs in the first batch.
However, recent changes have shown that at least two applications do not meet Hong Kong’s cryptocurrency asset management requirements. It remains unclear when and to whom the first spot Bitcoin ETF will be permitted to be offered in the region.
Currently, several Hong Kong-based companies and their representatives in mainland China have expressed interest in launching a spot cryptocurrency exchange-traded fund. China Southern Fund, Harvest Fund, Jiashi Fund, Huaxia Fund and Southern Fund have submitted applications through their Hong Kong branch and are awaiting regulatory approval.
Once the Hong Kong Securities and Futures Commission approves the first spot Bitcoin ETF, the Hong Kong Stock Exchange will need about two weeks to prepare the product for listing and other matters.
Potential approval for a spot Bitcoin ETF in Hong Kong could come three months after the U.S. Securities and Exchange Commission approved the first spot Bitcoin ETF in the United States. To date, the top 10 spot Bitcoin ETFs have allocated approximately $57 billion under management. The top three account for over 88%.