OSL executive anticipates the debut of a spot cryptocurrency ETF in Hong Kong

Gary Tiu, the Executive Director and Head of Regulatory Affairs at OSL, a Hong Kong-licensed cryptocurrency exchange, has indicated that the special administrative region may witness the launch of its first spot cryptocurrency Exchange-Traded Funds (ETFs) by the middle of this year, as reported by local media.

OSL executive anticipates the debut of a spot cryptocurrency ETF in Hong Kong

The Hong Kong Economic Journal revealed on Monday that Tiu stated OSL is actively engaged in discussions with numerous fund companies, with five to ten firms currently exploring the possibility of introducing a spot crypto ETF. Tiu highlighted that approximately five companies are progressing faster than others, raising the potential for the debut of Hong Kong’s inaugural spot crypto ETFs by mid-year.

Tiu emphasized the importance of managing fees responsibly in collaboration with fund companies, given that Hong Kong currently only has two licensed crypto exchanges, according to the media report.

Confirming the details in the media report, Tiu informed The Block on Monday that the introduction of spot crypto ETFs represents a pivotal development in the city’s crypto space. He stated, ‘These ETFs offer several crucial benefits, including promoting orderly markets for underlying digital assets, establishing a model for local investor protection, and accelerating integration between regulated digital asset platforms and traditional financial institutions.’

Gary Tiu’s comments follow an announcement earlier this month by HashKey, another licensed crypto exchange in Hong Kong, stating that it is in discussions with asset managers exploring potential launches of spot crypto ETFs. Livio Weng, the Chief Operating Officer of HashKey, mentioned that around ten fund companies are exploring the possibility of launching such ETFs in the city.