Hong Kong Crypto Exchange (OSL) Predicts the First Spot Crypto ETFs Will Be Available By Mid-Year
Several fund providers are interested in the first spot crypto ETFs to be launched in Hong Kong by OSL in mid-2024.
The first spot cryptocurrency exchange-traded funds (ETFs) in the special administrative region might be available by the middle of this year, according to Gary Tiu, executive director and head of regulatory affairs at OSL, a cryptocurrency exchange with a license in Hong Kong.
Hong Kong is actively seeking chances in the ever-changing bitcoin sector, which is why this development is significant.
Gary Tiu recently told local media that OSL is in talks with a lot of fund providers and that maybe five or ten of them are looking at the idea of establishing spot crypto ETFs.
According to Tiu, five of these firms have made great strides and may launch the first spot crypto ETFs in Hong Kong by the middle of 2024.
There will be obstacles in the way of this effort to introduce spot crypto ETFs to Hong Kong. According to local media, there are only two permitted cryptocurrency exchanges in the city. Tiu recognized the need to keep the costs associated with those products equal.
According to Gary Tiu, there are a number of major benefits to the city’s financial scene that would be greatly enhanced with the introduction of spot crypto ETFs. Among these goals are the accelerated integration of regulated digital asset platforms with conventional financial institutions, the development of a strong model to safeguard local investors, and the promotion of orderly markets for the digital assets themselves.
HashKey, another Hong Kong-based regulated crypto exchange, said earlier this month that it is in talks with asset managers about the possible introduction of spot crypto ETFs; this follows Tiu’s remarks.
According to HashKey COO Livio Weng, about 10 fund firms have started preliminary discussions on establishing such ETFs in Hong Kong.
Meanwhile, a Hong Kong-based financial services company called Venture Smart Financial Holdings Ltd. recently revealed that they are planning to launch a spot bitcoin ETF in the first quarter of this year.
The company’s stated goal of increasing the prospective ETF’s assets under management to $500 million by the end of 2024 is indicative of the increasing demand for crypto ETFs in the area, according to Bloomberg.
