• Venture Smart Financial Holdings is preparing to file for an Ethereum ETF, following its potential Bitcoin ETF.
• About 10 companies in Hong Kong are exploring launching cryptocurrency ETFs, anticipating possible competition on fees.

Venture Smart Financial Holdings Ltd (VSFG), a Hong Kong-based financial services firm, is taking major steps toward expanding its presence in the cryptocurrency world. Its most recent plan includes an application for a spot Ethereum exchange-traded fund (ETF). This move comes ahead of the launch of its spot Bitcoin ETF, scheduled for the first quarter.

In a recent interview, Lawrence Chu, president of VSFG, revealed that the company is close to completing the process to file its application for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission. According to Chu, in Hong Kong, lengthy regulatory discussions are a step prior to officially filing an application.

“When you file the application, you’re almost at the finish line,” he explained.

Chu also mentioned that, if all goes according to plan with the Bitcoin ETF, the company intends to apply for a spot Ethereum ETF in the second quarter.

“This will depend on our discussions with the regulator,” he said. “We will be ready.”

Interest in cryptocurrency ETFs is growing in Hong Kong. Last month, Livio Weng, chief operating officer of Hong Kong cryptocurrency exchange HashKey, commented that about 10 fund companies are exploring the launch of spot cryptocurrency ETFs in the city.

This trend suggests that there could be competition in terms of fee reductions among asset managers in Hong Kong, a phenomenon similar to that seen in the United States.

“We will see a number of ETFs in the market,” Chu stated. “Our approach is somewhat different in that we are facilitating other ETF issuers to enter this sector.”

Chu highlighted that, unlike in the U.S. where ETF issuers typically have teams dedicated to digital assets, there is a gap in this regard in Hong Kong.

“Many ETF issuers here do not have a dedicated digital asset team,” he said.

This positions VSFG less as a competitor and more as a partner in the industry, providing services to other ETF issuers.

This approach places VSFG in an interesting role within the Hong Kong cryptocurrency market. By helping other ETF issuers enter this field, VSFG takes the first steps towards the development and expansion of cryptocurrency-related financial products in the region. Its contribution goes beyond competition, offering an essential service for the growth and diversification of the digital financial market in Hong Kong.

Ethereum’s price experiences constant variations, reflecting trends in the crypto financial market and investors’ decisions at this time.