The Hong Kong Securities and Futures Commission has received its initial application for a spot Bitcoin ETF.

Hong Kong’s Securities and Futures Commission (SFC) has received its inaugural application for a spot Bitcoin exchange-traded fund (ETF) following the recent approval of the first spot BTC ETF in the United States by the Securities and Exchange Commission (SEC).

Reportedly, Harvest Hong Kong, one of China’s major fund managers, submitted the application for a spot Bitcoin ETF to the Hong Kong SFC on January 26, as per Tencent News. The SFC is actively streamlining the approval process for ETFs in the country to potentially launch the first Hong Kong spot Bitcoin ETF after the Chinese New Year on February 10.

While Harvest Fund might be the first applicant for a spot BTC ETF, other regional financial institutions are also expressing interest in launching such ETFs in 2024. At least 10 financial institutions in Hong Kong are reportedly gearing up to launch spot BTC ETFs, with some targeting the first quarter of 2024 for their launch, including Venture Smart Financial Holdings.

Additionally, existing crypto companies in Hong Kong, known for their futures-based crypto ETFs, are expected to enter the spot Bitcoin ETF space. Samsung Asset Management, for instance, which introduced the Samsung Bitcoin Futures ETF in 2023, has hinted at exploring the launch of a spot ETF.

Hong Kong has emerged as a prominent crypto hub in Asia, particularly with its pro-crypto regulatory stance in 2023. The SFC’s introduction of crypto-focused regulations allowed both institutional and retail investors to engage in crypto activities. Even before the US SEC’s approval of the first spot BTC ETF, the Hong Kong SFC paved the way for crypto-based ETFs and welcomed applications for various funds, including digital asset spot ETFs and existing crypto futures ETFs.