Venture Smart Financial Holdings Ltd. (VSFG), based in Hong Kong, is gearing up to apply to a spot Ethereum exchange-traded fund (ETF), following closely on the heels of its anticipated launch of a spot bitcoin ETF in the early part of this year.
In a recent discussion with one of the industry websites, Lawrence Chu, the Chairman of VSFG, shared that the company is nearing the completion of its application process for a spot bitcoin ETF with the Hong Kong Securities and Futures Commission.
According to Chu, a substantial amount of regulatory dialogue is undertaken in Hong Kong before an application is formally submitted. He stated, “Submission [for application] is almost like when you’re 95% there,” indicating that the submission phase signifies nearing the final approval stages.
Chu also mentioned that VSFG aims to apply for a spot in Ethereum ETF during the second quarter, assuming their spot in Bitcoin ETF receives approval and goes live in the first quarter. “But that depends on our conversation with the regulator,” he clarified. “We will be ready.”
Livio Weng, the chief operating officer at HashKey, a crypto exchange in Hong Kong, recently noted that approximately ten fund companies are exploring the launch of potential spot crypto ETFs within the city.
As numerous fund companies in Hong Kong are set to apply for spot bitcoin ETFs, Chu anticipates a competitive environment to lower fees among asset managers, mirroring trends in the U.S.
“There will be a few [ETFs] that come out,” Chu observed. He explained that VSFG’s position is somewhat unique as the company seeks to assist ETF issuers in entering the market, highlighting the knowledge gap and licensing requirements in Hong Kong, where most ETF issuers lack a dedicated digital asset team.
Chu elaborated, “It becomes less of a competition for us, but rather it’s competition between ETF issuers on their marketing side.” He described VSFG’s role as akin to a service provider to all ETF issuers rather than a direct competitor.
