Crypto News- Venture Smart Financial Holdings Ltd. (VSFG), a prominent Hong Kong-based financial services firm, is gearing up to officially seek approval for a spot Ethereum exchange-traded fund (ETF) after anticipating the launch of its spot bitcoin ETF in the first quarter.
Spot Ethereum ETF Application by Hong Kong’s VSFG Set for Q2 Submission
In a recent interview with The Block, VSFG Chairman Lawrence Chu revealed that the company is in the final stages of submitting its application for a spot bitcoin ETF to the Hong Kong Securities and Futures Commission. According to Chu, the submission process follows extensive regulatory discussions, and being in this phase indicates being nearly 95% ready.
Chu expressed optimism about a second-quarter submission for a spot Ethereum ETF, contingent upon the approval and listing of the spot bitcoin ETF in the first quarter. However, he emphasized that the timeline is subject to ongoing discussions with regulators. “But that really depends on the conversation we have with the regulator,” he explained. “We will be ready.”
VSFG’s Strategic Moves: Navigating the Path to Spot Ethereum ETF in Hong Kong
Highlighting the increasing interest in spot crypto ETFs in Hong Kong, Chu mentioned that around 10 fund companies are exploring the possibility. As more companies prepare to apply for spot bitcoin ETFs, there could be a competitive race to lower fees, similar to trends observed in the U.S. market.
Chu positioned VSFG’s role as unique, noting, “Our role is slightly nuanced because I think we’re also trying to help ETF issuers get into the game.” He highlighted the difference in approach between U.S. and Hong Kong ETF issuers, stating that many Hong Kong issuers lack a dedicated digital asset team due to licensing requirements and a knowledge gap. As a result, VSFG sees itself as a service provider facilitating ETF issuers rather than engaging in direct competition.
Chu concluded, “From that point of view, you can think of us as more of a service provider to all ETF issuers.” This perspective aligns with VSFG’s aim to contribute to the growth and development of the ETF market in Hong Kong.
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