Livio Weng, chief operating officer of Hong Kong licensed crypto exchange HashKey, said that about ten fund companies in Hong Kong have begun exploring the launch of potential spot crypto exchange-traded funds.
In an interview published today by Caixin, a Chinese financial news outlet, Weng mentioned that about ten fund managers, including those with Chinese capital backing and others from Asia and Europe, are exploring the possibility of introducing spot crypto ETFs in the city. About seven or eight of them have already been in contact with Hong Kong’s Securities and Futures Commission and have formed a team to start designing the investment products, according to Weng.
It is widely expected — though not confirmed — that the U.S. Securities and Exchange Commission will approve spot bitcoin ETFs on Wednesday, with trading set to commence the following day.
HashKey, which received a license from the SFC to offer retail crypto trading services in August, confirmed with The Block that it may participate in potential spot crypto ETFs in Hong Kong through two main aspects — engaging in crypto transactions associated with ETFs and providing crypto custody service.
Hong Kong is preparing to pave the way for spot crypto ETFs, with the SFC and the Hong Kong Monetary Authority, the city’s de facto central bank, announcing in December that both agencies have reviewed their existing policy. The regulators published two circulars addressing the requirements for spot crypto ETFs.
The SFC noted in the December circular that transactions of crypto made by spot crypto ETFs should be carried out through SFC-licensed crypto platforms or authorized financial institutions.
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