Hong Kong Explores Possibility of Spot Crypto ETFs
Hong Kong is reportedly considering allowing spot cryptocurrency exchange-traded funds (ETF), according to a new Bloomberg report. The city-state’s Securities and Futures Commission CEO Julia Leung outlines what would be required for spot crypto ETFs to be authorized in Hong Kong.
She states, “We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to try it as long as new risks are addressed. Our approach is consistent regardless of the asset.”
Hong Kong currently only allows futures-based crypto ETFs, including products such as the Samsung Bitcoin Futures Active and a Bitcoin (BTC) and Ethereum (ETH) futures ETF issued by CSOP Asset Management. The possibility of spot crypto ETFs getting approved in Hong Kong comes as the city-state aims to become a leading digital asset hub.
Hong Kong’s Virtual Assets Regulatory Framework
Earlier this year, Hong Kong introduced a virtual assets regulatory framework. According to Leung, the framework follows the principle of ‘same business, same risks, same rules’ and aims to provide robust investor protection and manage key risks, enabling the industry to develop sustainably and support innovation.
In June, reports emerged that the Hong Kong Monetary Authority had pushed for banks in the city-state to offer their services to licensed crypto exchanges. Additionally, China has shown support for Hong Kong’s plans to allow both institutional and retail investors to trade in crypto assets.
Hot Take: Hong Kong’s Growing Role in Digital Assets
Hong Kong’s consideration of allowing spot crypto ETFs reflects its ambition to become a leading digital asset hub. With its comprehensive virtual assets regulatory framework and efforts to facilitate crypto trading for both institutional and retail investors, Hong Kong is positioning itself as a key player in the global crypto market.
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