HashKey says nearly 10 hedge funds will launch spot crypto ETFs in Hong Kong
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With Hong Kong on the verge of approving spot crypto ETFs, nearly a dozen hedge funds are lining up to submit applications for the new financial product.
in a interview Livio Weng, chief operating officer of HashKey Group, revealed to Chinese news outlet Caixin that about a dozen hedge funds are preparing applications to launch spot cryptocurrency exchange-traded funds (ETFs) in Hong Kong, as the city is expected to become the first Market Asia allows these financial products to be listed.
While the timetable for Hong Kong regulators to approve applications remains uncertain, Ong mentioned that as many as eight hedge funds are already in the “actual advancement stage,” without providing specific details.
This follows a joint notice issued by the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) in December 2023, in which the regulators acknowledged the growing interest in launching spot crypto ETFs. The Securities and Futures Commission stressed that it is ready to accept authorization applications for cryptocurrency funds, including spot cryptocurrency ETFs.
Notably, Hong Kong has approved futures crypto ETFs for the region, including the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF. The ETFs are available for purchase through UBS’s local branch by Hong Kong investors with portfolios exceeding US$2 million.
While Hong Kong’s financial regulators have expressed a willingness to consider approving a spot cryptocurrency ETF, their overall stance on the broader cryptocurrency market appears to be cautious. In late December 2023, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) issued a joint statement outlining their decision to allow retail investors to purchase stablecoins.
Nonetheless, the regulator stressed that stablecoin issuers must obtain a special license from the Hong Kong Monetary Authority before offering services in the region. Licensing requirements include comprehensive support for all stablecoins in circulation, reserves matching their face value, appropriate segregation and custody of reserve assets, transparent disclosure practices, and regular reporting.
Additionally, stablecoin issuers seeking approval are required to establish a physical presence in Hong Kong by opening an office. The office should include the CEO, senior management team and key personnel to ensure compliance with regulatory standards and effective oversight.
