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…
