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Following the ETF process in the US, many developments continue to emerge. Accordingly, a Hong Kong-based financial services firm, Venture Smart Financial Holdings Ltd. (VSFG), is preparing to apply for a spot Ethereum exchange-traded fund with expectations of potentially launching a spot Bitcoin ETF in the first quarter.
Noteworthy Details on the Matter
VSFG’s Chairman of the Board, Lawrence Chu, mentioned in an interview on February 2nd that the firm is in the final stages of officially submitting its spot Bitcoin ETF application to the Hong Kong Securities and Futures Commission. According to Chu, comprehensive regulatory discussions in Hong Kong usually come before the submission of an application. Chu stated:
“The application is almost there, like when you are at 95%.”
Chu indicated that if the spot Bitcoin ETF product is approved and listed in the first quarter, the company aims to apply for a spot Ethereum ETF product in the second quarter:
“However, this really depends on the discussion we will have with the regulatory body. We will be ready.”
Last month, Livio Weng, the COO of Hong Kong crypto exchange HashKey, said that about 10 fund companies began exploring potential spot crypto ETF products in the city.
Crypto ETFs and Hong Kong
With several fund companies in Hong Kong preparing to apply for spot Bitcoin ETF products, there could be a fee reduction race among asset managers, similar to what has been observed in the US. Chu commented on this issue:
“There will be several ETFs emerging. Our role is a bit nuanced because we are trying to help ETF issuers enter the game as well.”
Chu pointed out that US ETF issuers tend to have their own crypto asset teams and mentioned that there is a bit of a licensing requirement in Hong Kong, but also a knowledge gap. Most ETF issuers do not have a crypto asset team:
“For us, this is becoming a competition in marketing among ETF issuers rather than a competition. From this perspective, you can think of us more as a service provider for all ETF issuers.”
