Hong Kong’s financial market regulator is evaluating the prospects of allowing retail investors access to spot crypto exchange-traded funds (ETFs), the CEO of the Securities and Futures Commission, Julia Leung, revealed.
“We welcome proposals using innovative technology that boosts efficiency and customer experience,” said Leung, who took over the office on January 1, 2023. “We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”
Hong Kong, similar to the United States, currently allows futures-based crypto ETFs. Currently, there are three such funds listed in Hong Kong – the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs – with combined assets of about $65 million, which is very modest when compared to the overall market size.
Spot crypto ETFs are expected to push the retail demand for the asset class. The availability of such ETFs on public exchanges will eliminate the need for having dedicated crypto exchange accounts.
In the US, the crypto industry and a significant section of the mainstream financial services players have been publishing for the approval of spot Bitcoin ETFs for years. Still, the Securities and Exchange Commission (SEC ) is reluctant to approve one. Among the applicants for Bitcoin ETFs include Blackrock, which is the largest asset manager with an asset under management (AUM) of about 9.5 trillion.
Crypto Rules in Hong Kong
Hong Kong is regarded as one of the Asian financial hubs. The special administrative region of China also rolled out a dedicated virtual-asset regulatory framework last June. The regulations are focused on bringing investor protection to the industry and also lure crypto companies with licensing provisions.
Despite Hong Kong’s attempt to protect the crypto investors, the jurisdiction witnessed its largest financial fraud recently, as the authorities alleged the JPEX crypto exchange duped about 2,600 local investors of HK$1.6 billion ($204 million).
“The incident underscores the requirement for a robust, comprehensive regulatory framework,” Leung said, adding that the regulator enhanced transparency to avoid such incidents in the future.
Hong Kong’s financial market regulator is evaluating the prospects of allowing retail investors access to spot crypto exchange-traded funds (ETFs), the CEO of the Securities and Futures Commission, Julia Leung, revealed.
“We welcome proposals using innovative technology that boosts efficiency and customer experience,” said Leung, who took over the office on January 1, 2023. “We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”
Hong Kong, similar to the United States, currently allows futures-based crypto ETFs. Currently, there are three such funds listed in Hong Kong – the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs – with combined assets of about $65 million, which is very modest when compared to the overall market size.
Spot crypto ETFs are expected to push the retail demand for the asset class. The availability of such ETFs on public exchanges will eliminate the need for having dedicated crypto exchange accounts.
In the US, the crypto industry and a significant section of the mainstream financial services players have been publishing for the approval of spot Bitcoin ETFs for years. Still, the Securities and Exchange Commission (SEC ) is reluctant to approve one. Among the applicants for Bitcoin ETFs include Blackrock, which is the largest asset manager with an asset under management (AUM) of about 9.5 trillion.
Crypto Rules in Hong Kong
Hong Kong is regarded as one of the Asian financial hubs. The special administrative region of China also rolled out a dedicated virtual-asset regulatory framework last June. The regulations are focused on bringing investor protection to the industry and also lure crypto companies with licensing provisions.
Despite Hong Kong’s attempt to protect the crypto investors, the jurisdiction witnessed its largest financial fraud recently, as the authorities alleged the JPEX crypto exchange duped about 2,600 local investors of HK$1.6 billion ($204 million).
“The incident underscores the requirement for a robust, comprehensive regulatory framework,” Leung said, adding that the regulator enhanced transparency to avoid such incidents in the future.
