Gary Tiu, executive director of OSL, a Hong Kong-licensed crypto exchange, has indicated that the region could see its first spot crypto exchange-traded funds (ETFs) by mid-year. He mentioned ongoing communications with numerous fund companies, with five to ten firms reportedly working on such ETFs, according to the Hong Kong Economic Journal.
Tiu highlighted that about five companies are progressing faster than others towards launching Hong Kong’s initial spot crypto ETF products within this year. He acknowledged the pressure to keep fees reasonable due to the limited number of licensed crypto exchanges in the city.
Confirming media reports, Tiu stated the introduction of spot crypto ETF products would be a significant development in the city’s crypto space, offering benefits like fostering regulated markets for core crypto assets, creating a model for local investor protection, and accelerating integration between regulated crypto asset platforms and traditional financial institutions.
These comments follow HashKey, another licensed crypto exchange in Hong Kong, discussing potential spot crypto ETFs with asset managers. Venture Smart Financial Holdings Ltd, a Hong Kong-based financial services firm, also revealed plans to potentially launch a spot Bitcoin ETF product in the first quarter, aiming for $500 million in assets under management by year-end.
Hong Kong is preparing to facilitate spot crypto ETF products after its Securities and Futures Commission and the Hong Kong Monetary Authority reviewed current policies in December, issuing circulars addressing requirements for spot crypto ETFs. The city currently lists several futures-based crypto ETF products, including the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ethereum Futures ETF.