According to Bloomberg, Hong Kong-based financial services company Venture Smart Financial Holdings Ltd. (VSFG) plans to submit an application to the Securities and Futures Commission of Hong Kong with the aim of launching a Bitcoin ETF in the first quarter. Brian Chan, the head of VSFG’s investment and product group, stated that this is a market with enormous potential, and their goal is to reach $500 million in assets under management by the end of this year.
According to its website, VSFG provides both traditional and digital wealth management services, and is one of the first virtual asset management companies approved by the Securities and Futures Commission in Hong Kong.
Last month, the Securities and Futures Commission issued guidelines for the approval of spot cryptocurrency funds, and currently allows cryptocurrency ETFs based on futures to be listed. The three futures-based ETFs currently listed include the “Samsung Bitcoin Futures Active ETF” launched by Samsung Asset Management (Hong Kong) Limited, as well as the “CSOP Bitcoin Futures ETF” and “CSOP Ethereum Futures ETF” launched by CSOP Asset Management.
Furthermore, Bloomberg also reported that Samsung Asset Management stated that it does not “rule out the possibility of exploring the launch of spot ETFs,” while CSOP Asset Management did not respond to requests for comments.
The Securities and Futures Commission stated that it will not make any further comments apart from the guidelines issued in December. If we look at the history of traditional ETFs, the approval process for such products could take several weeks to months.
Serra Wei, CEO of digital asset custody company Aegis Custody, stated that the company is in talks with four asset management firms regarding the listing of spot cryptocurrency investment products in Hong Kong. Wei also noted that compared to the low management fees of many new US Bitcoin spot ETFs, the regulatory requirements in Hong Kong may result in higher fees for issuers.
Rebecca Sin, an ETF analyst at Bloomberg Intelligence, stated that CSOP Asset Management may be in a leading position in the competition for digital asset spot ETFs in the Asia-Pacific region. She pointed out that among the currently futures-based digital asset ETFs in Hong Kong, CSOP’s products occupy the majority of managed funds.
