OSL Executive Director: Hong Kong Expected to Approve Spot Crypto ETFs by Mid 2024
Hong Kong may witness the launch of its first spot crypto exchange-traded funds (ETFs) by the middle of this year.
Gary Tiu, the executive director and head of regulatory affairs at OSL, a Hong Kong-licensed cryptocurrency exchange, said OSL is in close communication with multiple fund companies. According to him, five to ten firms are considering introducing a spot crypto ETF.
Tiu further indicated that some have made faster progress than others, raising the potential for the rollout of Hong Kong’s inaugural spot crypto ETFs by mid-2024. The Hong Kong Economic Journal also reported this on Monday.
Tiu further acknowledged the importance of ensuring that fees associated with the collaboration between OSL and the fund companies remain reasonable as there are presently only two licensed crypto exchanges operating in the city.
Tiu said that the introduction of spot crypto ETFs would be a significant development for the crypto industry in Hong Kong.
He highlighted the various benefits these ETFs offer, including promoting orderly markets for underlying digital assets, establishing investor protection measures, and facilitating integration between regulated digital asset platforms and traditional financial institutions.
Tiu’s comments follow an earlier announcement by HashKey, another licensed crypto exchange in Hong Kong, which stated that it was in discussions with asset managers exploring the potential launch of spot crypto ETFs.
Livio Weng, the chief operating officer of HashKey, revealed that approximately ten fund companies have begun exploring the introduction of such ETFs in the city.
In a separate development, Venture Smart Financial Holdings Ltd, a Hong Kong-based financial services firm, recently announced its plans to
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