Hong Kong-Based Asset Manager VSFG Files for Spot Bitcoin ETF

Hong Kong-based companies want to tap into the flourishing Bitcoin ETF boom, starting with VSFG.

The Hong Kong-based asset management company VSFG has applied for a spot Bitcoin exchange-traded fund (ETF) product with the Hong Kong Securities and Futures Commission (SFC). The investment company teamed up with another local asset management company Value Partners to apply for the ETF product.

Hong Kong Companies to Explore Bitcoin ETFs

In December 2023, Hong Kong regulators began considering the approval of spot crypto ETFs in the region. Earlier this month, industry leaders called on Hong Kong financial regulators to launch the spot ETF products as soon as possible, a local report stated. Additionally, Hong Kong has grown to become a crypto-friendly hub where crypto-based platforms can easily offer products to local users.

These moves suggest that the government will likely approve the spot Bitcoin ETF sooner. If this happens, it would save investment companies the hassle of back and forth tussle with the Hong Kong government over the approval of the financial product. This occurred with the United States government when financial companies used a court hearing to convince the Securities and Exchange Commission (SEC) a few weeks before its approval.

VSFG’s latest move to file for a Bitcoin ETF follows an earlier Bloomberg report where the company revealed plans to apply for the product within the region.

Bitcoin ETF Boom

Since the approval of the spot Bitcoin ETF in the U.S. on January 10th, a cohort of financial companies have offered the product to users. These institutions include Grayscale, BlackRock, Fidelity Investments, VanEck, and others. In less than three months, these companies have soaked in an impressive $50 billion worth of assets from investors.

The increasing engagement has ultimately sparked a significant price surge for the underlying asset, BTC. Before several companies began filing for the spot Bitcoin ETF, the asset traded around $30,000. However, months before approval, the asset soared to as high as $73,700. Today, BTC trades at $68,500. An approval in Hong Kong will likely push BTC’s value higher.