As part of its efforts to become a regional hub for digital assets, Hong Kong is considering allowing spot crypto exchange-traded funds (ETFs) that would allow retail investors to directly buy and sell cryptocurrencies.
This was revealed by Julia Leung, the CEO of the Securities and Futures Commission (SFC), who noted access to crypto ETFs would be subject to regulatory approval. Per Leung, Hong Kong is “happy to give it a try as long as new risks are addressed.”
Both Hong Kong and the U.S. currently allow investors to buy and sell futures-based crypto ETFs, but these products haven’t attracted much interest from fund investors. The three such ETFs listed in Hong Kong – Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures ETFs – have a total of around $65 million in assets
The demand for spot ETFs, which would allow retail investors to directly trade cryptocurrencies, is uncertain, although Bitcoin’s price has recently surged following rumors that suggested BlackRock’s proposed spot Bitcoin ETF had been approved by the U.S. Securities and Exchange Commission (SEC).
In June, Hong Kong introduced a specific regulatory framework for virtual assets, aiming to revive its reputation as a leading financial hub. The rules seek to attract firms while also boosting investor protection.
The SFC’s digital asset regulations allow retail investors to trade tokens on licensed exchanges, and mandatory rules for stablecoins are due by next year. Hong Kong’s officials are also exploring tokenization, recently updating regulatory guidance to help tokenized product offerings for retail investors.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/nov/06/
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