Key Points
- HashKey, a Hong Kong-based crypto exchange, has prepared infrastructure for possible spot Bitcoin ETFs.
- There’s anticipation that Hong Kong regulators may approve Bitcoin ETFs as early as next week.
Hong Kong licensed crypto exchange, HashKey, has completed the development of product features and relevant infrastructure services for potential spot Bitcoin exchange-traded funds (ETFs).
This comes as reports suggest that Hong Kong could approve such an ETF in the coming week.
Preparation for Bitcoin ETFs
Livio Weng, HashKey Exchange’s CEO, stated that the fund issuers, in cooperation with HashKey, have finalized the development of their spot Bitcoin ETFs.
HashKey plans to provide infrastructure support for the ETFs and is currently in the “integration and functional testing” phase.
“As an ETF applicant in Hong Kong, HashKey provides underlying infrastructure support, encompassing trading, custody, and SSA facets,” Weng explained.
He also noted that HashKey’s custody business has been operating stably for over a year, with assets under custody exceeding HK$2.2 billion ($280.7 million).
HashKey hasn’t revealed the asset managers it’s collaborating with.
Anticipated Approval
According to insiders, Hong Kong regulators might approve the first batch of spot Bitcoin ETFs as soon as next week.
The approval process has reportedly been expedited.
At least four asset managers, including those from mainland China and Hong Kong, have submitted their applications to launch such ETFs.
Unlike mainland China’s broader crackdown on cryptocurrency trading and mining, Hong Kong welcomed crypto firms last year.
In June 2023, Hong Kong officially started its crypto licensing regime for crypto trading platforms, granting licenses to HashKey and OSL.
Weng also hinted at the possibility of launching spot Ethereum ETFs in the near future, particularly if the issue of on-chain staking can be resolved.
He suggested that this could attract more large institutional investors to choose this type of ‘yield-bearing asset,’ which might be more appealing than spot Bitcoin ETFs.
