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Hong Kong Receives Regulatory Green Light for its First Bitcoin ETF

Bitcoin exchange-traded fund

Hong Kong will have its first Bitcoin exchange-traded fund as Very Smart Financial Group (VSFG) and its Arrano Capital blockchain arm have reportedly received regulatory approval to launch Hong Kong’s first Bitcoin exchange-traded fund (ETF).

Only professional investors can have access to the exchange-traded fund according to JRJ. 

The Hong Kong regulatory Securities and Futures Commission (SFC) was the organization that approved VSFG’s approval for the issuance of the fund.

Securities and Futures Commission

The masterminds behind the funds said in their updated prospectus that they are willing to raise USD 100M with the new Bitcoin ETF.

Hong Kong’s first regulated crypto index fund was launched by Arrano Capital in April last year. It claims that it uses the tracking technology co-developed by CryptoComapre and MV Index Solutions along with a conventional fund structure to track bitcoin (BTC) prices. It will also allow institutional investors access to crypto. 

It seems now that the index will be available as an Exchange Traded Fund possibly functioning on Hong Kong’s top stock exchange. 

A capitalization rate of 10% has been placed on the fund’s crypto to composite the fund’s holdings.

VSFG gives financial management services for prosperous customers, companies, and financial institutions. It also provides sales and advisory services, in addition to asset management services. It enhances the determinants that could potentially bring in the opportunity towards crypto for some of Hong Kong’s wealthy personalities and firms. 

As stated in reference to a report, in the United States, financial advisors say that an ETF would be the preferred option for them if they should invest in crypto. Aiming at more legitimacy in the financial community many believe that Bitcoin ETF will be introduced in the US.

Exchange Traded Fund possibly

Top US asset manager VanEck, in the month of December, has for another time submitted an application to the US Securities and Exchange Commission requesting a Bitcoin ETF, the “VanEck Bitcoin Trust.”

Meanwhile, the launch of another Bitcoin ETF is expected in Canada. This speculation was made after Arxnovum Investments presented documentation to the Ontario Securities Commission for its own Arx Novum Bitcoin ETF.

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