Hong Kong is considering allowing spot cryptocurrency exchange-traded funds (ETFs), signaling an effort to position itself as a digital asset hub in the Asia-Pacific (APAC) region.
Retail-Investor Access to Spot Crypto ETFs
Citing a statement from Hong Kong’s Securities and Futures Commission (SFC) CEO Julia Leung, Bloomberg reported that the city is open to allowing retail-investor access to such products if regulatory concerns are met.
“We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset,” Leung said in a statement.
Currently, Hong Kong allows futures-based crypto ETFs, hosting multiple products, including the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs. These ETFs have combined assets worth $65 million.
However, the city has yet to approve a spot ETF akin to the United States. Several prominent asset managers have filed spot Bitcoin ETF applications with the US Securities and Exchange Commission (SEC) in recent months, signaling institutional adoption of the asset.
Following news of the imminent approval of the first spot Bitcoin ETF in the US, the price of the flagship cryptocurrency has surged 110% since the beginning of the year.
A Major Hub for Crypto
Meanwhile, the latest development further underscores Hong Kong’s efforts to become a major digital asset hub in the APAC region. In recent months, the city has continued to take a progressive approach toward the crypto industry while focusing on retail investors’ protection.
In June, Hong Kong’s Securities and Futures Commission launched a digital asset regulatory framework, allowing crypto firms to secure licenses and offer regulated services to investors in the city.
Also, in the same month, Coinfomania reported that the Hong Kong Monetary Authority (HKMA) was encouraging banks in the city, including HSBC and Standard Chartered, to accept crypto exchanges as clients despite a regulatory crackdown on such ties in the US and Europe.
