Hong Kong is set to receive its first spot Bitcoin ETF, while the US Securities and Exchange Commission remains reluctant to approve one.

Hong Kong SFC-approved virtual asset manager VSFG (Yibo Finance), which already has approved crypto ETF, prepares to apply for a virtual asset service provider (VASP) and category No. 7 licenses. The company also plans to list a spot Bitcoin fund as an ETF.

Hong Kong Firm Seeks Approval For First Spot Bitcoin ETF

Virtual asset management firm VSFG (Yibo Finance) currently negotiating with Hong Kong exchange-traded fund (ETF) issuers and regulators to allow funds tracking spot Bitcoin prices to be listed as ETFs.

The firm is also applying for a virtual asset service provider (VASP) license and a category 7 license for automated trading services, reported Hong Kong Commercial Daily on June 2. Hong Kong kicked off its crypto licensing regime on June 1 allowing crypto exchanges and firms to offer services to institutional and retail investors.

Recently, Samsung Asset Management Hong Kong launched a Bitcoin futures ETF. The Bitcoin ETF tracks the performance of spot Bitcoin price by investing in Bitcoin futures products listed on the Chicago Mercantile Exchange (CME).

VSFG chairman Chengyu Zhu asserts that Hong Kong’s virtual asset regulations are still in the early stage. The Security and Futures Commission (SFC) and Hong Kong Monetary Authority’s (HKMA) are working to make the city into a crypto hub.

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Flourishing Crypto Landscape in Hong Kong

Hong Kong will potentially get its first approved stablecoin as licensed custodian First Digital launched FDUSD stablecoin. First Digital USD (FDUSD) issued by First Digital Trust is backed by cash or highly liquid assets on a 1:1 basis by the US dollar held in regulated financial institutions’ accounts in Asia.

Hong Kong allowed retail investors to trade top cryptocurrencies. However, retail investors will not trade stablecoins due to pending Hong Kong Monetary Authority’s (HKMA) regulations on stablecoins.

Top crypto exchanges such as OKX and Huobi are applying for licenses in Hong Kong. The regulators are taking a cautious approach in their crypto regulations and guidelines.

Also Read: Bitcoin, Ethereum Recover On Debt Ceiling Deal, US Fed Pause, Easing Jobs Market

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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