Hong Kong Set to Approve First Batch of Spot Bitcoin ETFs

Reports indicate that the Securities and Futures Commission of Hong Kong is poised to approve the first batch of spot Bitcoin exchange-traded funds (ETFs) in the region by April 15. Initially, the regulator planned to approve four spot Bitcoin ETFs, but at least two applications did not meet the requirements for crypto asset management in Hong Kong.

Several Hong Kong-based companies and proxies from mainland China, including China Southern Fund, Harvest Fund, Jiashi Fund, Huaxia Fund, and Southern Fund, have submitted applications for spot crypto ETFs via their Hong Kong arms and are awaiting regulatory approval.

Once approved, the Hong Kong Stock Exchange will require approximately two weeks to prepare for product listing and other related matters. This development follows the U.S. Securities and Exchange Commission’s approval of the first batch of spot Bitcoin ETFs in the United States, which took place three months ago. Currently, the top 10 spot Bitcoin ETFs globally manage around $57 billion, with the top three accounting for over 88% of the total assets under management.

The potential approval of spot Bitcoin ETFs in Hong Kong is a breakthrough in the city’s crypto market and the growing acceptance and adoption of cryptocurrencies in the traditional financial sector. It further establishes a broader trend of regulatory evolution and adaptation to meet the demands of investors and market participants in the rapidly evolving digital asset space.