OSL executive says Hong Kong could debut spot crypto ETF by mid-year

OSL, a Hong Kong-licensed crypto exchange, has stated that the city could potentially debut its first spot crypto exchange-traded funds (ETFs) by mid-year. Gary Tiu, OSL’s executive director, mentioned that the company is in close communication with several fund companies, with five to ten currently studying the possibility of launching such ETFs. Tiu also emphasized the importance of keeping fees reasonable in collaboration with fund companies, considering Hong Kong’s limited number of licensed crypto exchanges. The introduction of spot crypto ETFs is viewed as a significant development in the crypto space, offering benefits such as orderly markets, investor protection, and integration with traditional financial institutions. This announcement follows HashKey, another licensed crypto exchange in Hong Kong, expressing its discussions with asset managers exploring spot crypto ETF launches. Additionally, a financial services firm in Hong Kong called Venture Smart Financial Holdings Ltd recently revealed its plan to potentially launch a spot bitcoin ETF in the first quarter. The regulators in Hong Kong, the Securities and Futures Commission and the Hong Kong Monetary Authority, have already reviewed their existing policies and published guidelines for spot crypto ETFs. Currently, Hong Kong has several futures-based crypto ETFs listed on its exchange.