Hong Kong-based VSFG Aims for Q2 2024 Launch of Ethereum ETF

The recent approval of a spot Bitcoin ETF has generated excitement in the cryptocurrency space and has paved the way for mass adoption of crypto and the acceptance of Bitcoin as a viable asset class alongside traditional assets. Following this approval, the anticipation for the approval of a spot Ethereum ETF is growing, particularly in Hong Kong, a prominent player in the crypto industry. It has been announced that Hong Kong will launch Ethereum ETFs in the second quarter of the year, and here are the details:

After the success of spot Bitcoin ETFs, Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based company, is considering applying for a spot Ethereum ETF. The company is currently finalizing its application for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission, and it expects to receive clearance and be listed in the second quarter of this year. Coincidentally, the US Securities and Exchange Commission (SEC) may also approve its first Ethereum ETF during the same period.

In a recent interview with The Block, VSFG Chairman Lawrence Chu outlined the company’s plans to submit an application for a spot Ethereum ETF in the second quarter. Chu emphasized that there will be a thorough process of regulatory discussions and preparations before the official submission, and the company is well-prepared for it.

Chu also discussed the role that VSFG plays in the evolving ETF landscape in Hong Kong. He mentioned that the company not only competes with other ETF issuers but also seeks to assist them in dealing with legal issues and filling in the knowledge gaps in the digital asset space.

While acknowledging the challenges, Chu pointed out that many ETF issuers in the US have specialized teams dedicated to digital assets, unlike in Hong Kong. VSFG sees itself as a service provider that helps ETF makers enter the cryptocurrency ETF market, fostering collaboration rather than direct competition.

This move by VSFG comes as major players like BlackRock, Inc. and Grayscale file spot Ether ETF applications with the SEC in the US, opening up opportunities for others to join the league. Similar to spot Bitcoin ETFs, spot Ethereum ETFs are expected to experience less selling pressure.

As the crypto ETF ecosystem continues to evolve, VSFG aims to contribute to the growth and accessibility of crypto-based investment products in Hong Kong. The application for a spot Ethereum ETF in the second quarter aligns with the trend of traditional financial firms embracing digital assets in the global investment landscape.

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