Harvest Hong Kong, one of China's largest fund managers, has submitted an application for the first spot Bitcoin exchange-traded fund (ETF) to the Hong Kong Securities and Futures Commission (SFC). This comes only weeks after the United States Securities and Exchange Commission (SEC) granted approval for the first ETF in the US. The Hong Kong SFC has stated that it is actively expediting the approval process for ETFs and aims to launch the first Hong Kong spot Bitcoin ETF after the Chinese New Year on February 10th.

The regulatory body is considering adopting a similar approach to the US SEC by approving multiple spot ETFs to ensure fairness and competitiveness. Although Harvest Hong Kong is the first applicant, it is likely that other regional financial institutions will also express interest.

Hong Kong has emerged as a prominent crypto destination in Asia due to its pro-crypto approach. In 2023, the SFC introduced regulations that allowed institutional and retail investors to participate in crypto activities. Even prior to the approval of the first spot BTC ETF in the US, the Hong Kong SFC expressed its preparedness to receive applications for various funds, including digital asset spot ETFs and existing crypto futures ETFs.

Why does it matter?

The submission of the spot Bitcoin ETF application in Hong Kong is a significant development following the US approval. It signifies the increasing interest and demand for crypto ETFs and highlights Hong Kong's willingness to embrace and regulate the crypto industry. Hong Kong's emergence as a leading crypto destination in Asia solidifies its position as a hub for crypto investments and activities.