Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based financial services company, is preparing to apply for a spot Ethereum exchange-traded fund (ETF) in anticipation of launching a spot Bitcoin ETF in the first quarter.
In an interview with The Block on Friday, VSFG Chairman Lawrence Chu said the company is in the final stages of formally submitting a spot Bitcoin ETF application to the Hong Kong Securities and Futures Commission.
According to Chu, in Hong Kong, extensive regulatory discussions typically take place prior to application submission. “Submissions (for applications) are pretty much the same when we get to 95%,” he added.
Chu noted that the company is targeting a second-quarter filing for a spot Ethereum ETF if the spot Bitcoin ETF is approved and listed in the first quarter. “But it really depends on the conversations we have with regulators,” he said. “We will be ready.”
Last month, Livio Weng, COO of Hong Kong cryptocurrency exchange HashKey, said: 10 fund companies The city has begun investigating a potential spot crypto ETF launch.
Possible fee war?
While several fund companies in Hong Kong are preparing to apply for spot Bitcoin ETFs, competition to reduce fees Among asset managers, this is similar to what has been observed in the United States.
“There will be several ETFs coming out,” Chu said. “I think our role is a little bit nuanced because we’re trying to help ETF issuers get in the game.”
Chu noted that U.S. ETF issuers tend to have their own digital asset teams. “Hong Kong has some licensing requirements, but there are also knowledge gaps. “Most ETF issuers do not have digital asset teams.”
“This is not a competition for us, but rather a competition among ETF issuers in terms of marketing,” Chu continued. “From that perspective, you can think of us as more of a service provider to all ETF issuers.”
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.