Julia Leung, the Chief Government Officer of Hong Kong’s Securities and Futures Fee (SFC), mentioned the regulator was contemplating opening up spot crypto exchange-traded funds (ETFs) to retail buyers, Bloomberg reported.
A spot crypto ETF is an funding automobile that tracks the worth of the underlying asset. The ETFs permit buyers to have publicity to the asset with out proudly owning them immediately.
In keeping with Leung, the fee would permit these investments in the event that they adjust to the area’s laws, noting that Hong Kong welcomes proposals that use modern expertise to spice up effectivity and buyer expertise.
“We’re joyful to offer it a strive so long as new dangers are addressed. Our method is constant whatever the asset,” she mentioned.
This transfer alerts a potential U-turn from the fee’s earlier restriction of spot-crypto ETFs to retail buyers. For context, the regulator had described digital asset exchange-traded funds (VA ETFs) and exchange-traded merchandise (VA ETPs) as complicated merchandise that ought to solely be provided to skilled buyers in its up to date steering for the trade final month.
Nonetheless, the transfer corresponds with Hong Kong’s latest pattern of implementing pro-crypto laws. All through this yr, Hong Kong has been actively shaping itself as a crypto-friendly area, with quite a few initiatives designed to advertise the rising trade.
These efforts embody the introduction of a licensing framework for crypto exchanges, monetary assist for web3 improvement, and regulatory mandates urging banks to offer equitable remedy to crypto purchasers.
It must be famous that Hong Kong has already authorised the operations of three cryptocurrency ETFs: CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Energetic ETF.
Over the previous a number of months, spot-based ETFs have loved particular consideration from the crypto group, particularly with the doorway of a number of main monetary establishments, together with BlackRock and others, who’re submitting purposes with the U.S. Securities and Alternate Fee (SEC) for a spot-based Bitcoin ETF.
Nonetheless, regardless of the market optimism surrounding the ETFs, the U.S. SEC has but to approve any of the purposes earlier than it, as a substitute selecting to delay its choice till subsequent yr.
