- Two Hong Kong regulators have set their sights on cryptocurrency exchange-traded funds.
- The commission has shifted its once-rigid approach regarding how investors engage with virtual assets.
- The commissions will prioritize investor protection.
The cryptocurrency industry is experiencing a surge in demand for spot Exchange-Traded Funds (ETFs), and the imminent potential approval of the first-of-its-kind is fueling excitement among investors. Despite the delayed SEC verdict, anticipation is mounting for the potential benefits spot ETFs could usher into the industry.
Not one to be left behind, Hong Kong, renowned for its proactive approach to embracing the burgeoning industry, has now signaled a green light for crypto exchange-traded funds.
Hong Kong To Accept Crypto ETF Applications
In a joint circular on Friday, December 22, the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) unveiled preparations for launching exchange-traded funds that invest directly in cryptocurrency assets for retail and professional investors.
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The decision comes in response to the increasing volume of inquiries from intermediaries seeking clarity on investment products with exposure to cryptocurrency assets.
“The policy is updated in light of the latest market developments, where the SFC has authorised VA futures ETFs and is prepared to accept applications for the authorisation of other funds with exposure to virtual assets, including virtual asset spot exchange-traded funds (VA spot ETFs),” the circular stated.
Emphasizing that while the SFC’s regulatory approach for virtual assets in 2018 was initially restricted to professional investors, the rapidly evolving industry has facilitated a shift in the commission’s approach to allow a broader range of investment products for both retail and professional investors.
The SFC and HKMA have updated policies guiding virtual asset provision to implement controls to ensure investor protection.
Read more on the ETFs buzz in the United States:
Bitcoin ETF “a Major Catalyst”: Grayscale Microstrategy
USDC issuer Circle has ventured into France:”
Circle Obtains French Regulatory Nod To Offer Crypto Assets
