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Hong Kong Asset Managers Race to Launch Spot Bitcoin ETFs Following U.S. Approval

The spot Bitcoin ETF craze, sparked by recent approval in the U.S., is making its way to Hong Kong, where regulators are receptive to the product. Value Partners Group and Venture Smart Financial Holdings (VSFG), two prominent Hong Kong-based asset managers, have entered a memorandum of understanding to collaborate on introducing traditional investment vehicles backed by digital assets to both retail and institutional investors in the region.

Their primary focus is on the potential launch of exchange-traded funds (ETFs) tracking spot Bitcoin (BTC). Leveraging Hong Kong’s crypto-friendly regulatory environment, the asset managers aim to provide transparent and liquid access to Bitcoin as an asset class, catering to the growing demand among investors.

June Wong, CEO of Value Partners, expressed optimism about seizing the opportunity presented by Hong Kong’s regulatory approach and leveraging their combined experience to offer efficient exposure to the world’s largest digital asset through the ETF vehicle. Lawrence Chu, Chairman at VSFG, emphasized the importance of capturing the first-mover advantage amid the rapidly evolving financial landscape in Hong Kong and the global virtual asset space.

The competition is heating up, with the potential for Hong Kong to debut spot Bitcoin ETFs by mid-year. OSL’s Chief Executive Gary Tiu noted the government’s progress in enabling the listing of these products on local exchanges. Lawmakers in Hong Kong have been pushing for the swift adoption of spot BTC ETFs, taking cues from the U.S. Securities and Exchange Commission’s approval, which saw significant inflows just two weeks after launch.

HashKey reported that nearly 10 hedge funds are prepared to launch crypto spot ETFs in Hong Kong, and the securities regulator in the region hinted at allowing local investors to participate. As the race intensifies, the collaboration between Value Partners and Venture Smart Financial Holdings signals a strategic move to establish a foothold in the growing market for spot Bitcoin ETFs in Hong Kong.

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