BasEx | Hong Kong's Spot Bitcoin ETFs Approval
Hong Kong Authorities Announce Readiness to Approve Spot Bitcoin ETFs
24.12.2023
Hong Kong Authorities Announce Readiness to Approve Spot Bitcoin ETFs

The Securities and Futures Commission (SFC) of Hong Kong, in collaboration with the Monetary Authority, have updated their regulations concerning cryptocurrency operators. In a joint statement, they announced their readiness to consider applications for new spot Bitcoin ETF products, in addition to existing futures exchanges.

In additional guidelines, the SFC states that crypto funds should be limited to investments in tokens traded on regulated platforms in Hong Kong, and transactions should be conducted exclusively through licensed intermediaries. The use of custodians approved by regulators is also required.

Redemption of crypto ETFs can be carried out either in cash or in-kind.

Any launch of funds in which the cryptocurrency's share exceeds 10% of the total net asset value will require preliminary consultations with the SFC.

In the US, the SEC is currently considering over a dozen applications for the creation of spot Bitcoin ETFs, including companies such as BlackRock, VanEck, Invesco, Fidelity Investments, and WisdomTree.

In recent months, many companies have been actively consulting with the regulator and making adjustments to their applications in accordance with the requirements presented. Industry experts predict that the approval of mass products could occur around the beginning of January.

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