After the recent green light for a spot Bitcoin exchange-traded fund (ETF) in the U.S., numerous financial institutions in Hong Kong have expressed interest in following suit. Harvest Hong Kong, one of the country's major fund managers, submitted the first spot Bitcoin ETF application to the Hong Kong Securities and Futures Commission (SFC), closely trailing the initial approval of the first U.S. spot BTC ETF. This development has spurred other interested institutions to join the race to partake in this significant milestone.

Reports subsequently emerged indicating that the regulatory body in Hong Kong is expediting efforts to accelerate the approval process for these ETFs, aiming to have the country's inaugural spot Bitcoin ETF ready for launch shortly after the Chinese New Year on February 10. Similar to its U.S. counterpart, the SFC may endorse multiple spot ETFs to ensure fair competition in the market.

While Harvest Fund leads the charge, other institutions have also expressed their intent to follow suit. With plans to introduce a spot BTC ETF by 2024, at least ten Hong Kong-based institutions, including financial giant Venture Smart Financial Holdings, are preparing to inundate the market with their offerings.

Moreover, it is anticipated that established crypto companies, previously involved in futures-based crypto ETFs, may also enter the arena. Notably, Samsung Asset Management, responsible for the successful launch of the Samsung Bitcoin Futures ETF in 2023, has hinted at a potential shift towards launching a spot ETF.

Hong Kong's favorable stance towards crypto, particularly following the implementation of crypto-specific regulations by the SFC in 2023, has positioned it as a leading crypto hub in Asia. These regulatory measures enable both institutional and retail investors to participate in various crypto ventures and have spurred the authorization of diverse funds, including digital asset spot ETFs and crypto futures ETFs.