HashKey, a Hong Kong-based cryptocurrency exchange, has successfully completed the necessary preparations for potential spot Bitcoin exchange-traded funds (ETFs) in the region. This announcement comes as there are speculations that Hong Kong may approve Bitcoin ETFs in the near future.

Livio Weng, CEO of HashKey Exchange, revealed that the company has collaborated with fund issuers to develop spot Bitcoin ETFs. HashKey is now in the integration and functional testing phase, preparing to provide significant infrastructure support for these ETFs. The exchange will offer basic infrastructure services, including trading, custody, and SSA, for the fund issuers.

HashKey's custody business, which has been operational for over a year, boasts custody assets worth over HK$2.2 billion ($280.7 million), highlighting the exchange's stability. Although HashKey has not yet disclosed the names of its collaborators, reports suggest that Hong Kong regulators may approve the first batch of spot Bitcoin ETFs as early as next week.

This potential approval could lead to a surge in demand for crypto investment products, as stated in a Matrixport report. The accelerated approval process indicates a swift regulatory response to the increasing demand for crypto investments. According to Reuters, at least four asset managers, including entities from China and Hong Kong, have applied to launch spot Bitcoin ETFs.

In contrast to China's strict stance on cryptocurrency trading and mining, Hong Kong has adopted a more welcoming approach towards crypto firms. Last year, the region introduced a licensing regime for crypto trading platforms, allowing licensed exchanges like HashKey and OSL to offer retail trading services. This development could pave the way for a more accessible and regulated crypto market in Hong Kong.