Value Partners Hong Kong, a subsidiary of asset manager Value Partners Group, has combined with Venture Smart Financial Holdings (VSFG), a Hong Kong Securities and Futures Commission (SFC) approved virtual asset manager.
The two firms signed a Memorandum of Understanding (MoU) this week to join forces to help connect virtual assets with traditional investment vehicles to both retail and institutional investors.
The companies plan to launch a spot bitcoin ETF in Hong Kong this year, which will be structured to track the spot prices of Bitcoin. The intention is to offer investors a new way to access and participate in the performance of this asset using traditional financial infrastructures.
“To bring digital investment solutions to investors as we eye on the untapped opportunities in the prevailing trend of virtual assets, we have made the strategic move to embark on this partnership with VSFG, a pioneering virtual asset manager in Hong Kong,” said June Wong, chief executive officer at Value Partners.
The spot bitcoin ETF will provide increased flexibility, transparency and liquidity, making it an attractive option for both retail and institutional investors, according to Value Partners.
Value Partners has 30 years asset management experience in Hong Kong, including managing ETFs, while VSFG has the technical know-how as the first virtual asset manager in Hong Kong to launch the SAR’s first regulated bitcoin fund in June 2020.
The SFC is currently open to applications for the authorisation of funds that invest in or have exposure to virtual assets. Last month, the regulator introduced new rule specifying the criteria that SFC-authorised funds must meet to directly invest in spot crypto funds.
There are reportedly up to 10 companies exploring the possible launch of spot ETFs in Hong Kong.
“The plan to launch a spot bitcoin ETF marks our first collaborative initiative, offering Hong Kong investors exposure to the world’s largest digital asset, all while enjoying the convenience and efficiency of the ETF vehicle,” added Wong.
“We have seen a rapid evolution and great potential of the global virtual asset landscape over the past few years, and Hong Kong is no exception,” Lawrence Chu, chairman at VSFG said.
“Through our combined efforts with Value Partners on the development of a spot bitcoin ETF in Hong Kong, we aim to support Hong Kong to become an international virtual assets centre.”