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- Gary Tiu, an executive at OSL, has stated that Hong Kong’s inaugural crypto spot ETFs are expected to launch by mid-2024.
- As many as ten fund companies are intensifying their research efforts in anticipation of spot crypto offerings.
Hong Kong is set to unveil its first spot crypto exchange-traded funds (ETFs) by mid-2024, as indicated by Gary Tiu, executive director and head of regulatory affairs at OSL, a licensed cryptocurrency exchange.
This announcement was made public today in an article featured in the Hong Kong Economic Journal.
Tiu mentioned that OSL is actively engaging with numerous fund companies. He expects the initial ETFs to be launched before the middle of the year, with approximately 5-10 firms currently involved in research.
While there is enthusiasm surrounding this development, Tiu warns that the early phase may experience limited competition and pricing dynamics, due to the market’s early stage with only two licensed platforms available.
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Nonetheless, he recognizes the importance of keeping fees reasonable, driven by market transparency and comparisons to the US market.
Echoing Tiu’s positive perspective, Livio Weng, COO of HashKey Group, another licensed virtual asset exchange in Hong Kong, disclosed to Caixin earlier this month that more than ten fund companies are in advanced stages of preparation to introduce spot ETFs in the region.
With 7 out of 8 companies already in the promotional phase, Weng anticipates a strong momentum towards launching Hong Kong spot ETFs in the near future.
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This initiative is further supported by a favorable regulatory landscape.
The Hong Kong Securities and Futures Commission (SFC) is currently accepting applications for the authorization of funds that invest in or have exposure to virtual assets.
Last month, the SFC rolled out new regulations outlining the criteria that SFC-authorized funds must fulfill to invest directly in spot crypto funds.
Recently, Venture Smart Financial Holdings (VSFG), one of Hong Kong’s first SFC-approved virtual asset managers, informed Bloomberg of its intention to apply for an ETF with the SFC.
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The firm aims to launch its ETF product in Q1/2024, with aspirations to manage assets totaling $500 million by the end of the year.
The movement towards crypto ETFs in Hong Kong follows the successful launch of spot Bitcoin ETFs in the US, paving the way for Hong Kong to emerge as a new center for crypto ETFs.
However, concerns persist regarding market demand, particularly in light of the relatively small assets under management by existing crypto funds in Hong Kong.
Nevertheless, Zhu Chengyu, chairman of VSFG, remains hopeful, emphasizing the strategic benefit of serving the Asian time zone and the ongoing discussions with institutional investors across Asia, including South Korea, Japan, and Taiwan, to enhance demand for these innovative financial products.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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