Hong Kong to Consider Spot Crypto ETFs for Retail Investors

Retail digital assets investors in Hong Kong might soon have access to spot crypto ETFs.

Chinese dragon with a Bitcoin in his mouth, turning it into an ETF, on the high street of Hong Kong.
Created by Kornelija Poderskytė from DailyCoin
  • Hong Kong Retail investors might soon have access to spot crypto ETFs.
  • The SFC is deliberating on retail exposure to digital assets.
  • This would come to pass after regulatory concerns are addressed.

Hong Kong is mulling over allowing retail investors to access spot exchange-traded (ETF) funds that invest directly in crypto. The region sets out to become a digital assets hub in Asia ahead of rising Singapore and Dubai.

The deliberation follows an October 13 circular by the Securities and Futures Commission (SFC), which reversed the region’s stance toward spot crypto ETF investing and expanded retail access through intermediaries “in light of the latest market developments and inquiries from the industry.”

Spot Crypto ETFs Could Be a Go If “Regulatory Concerns Are Met”

In her first interview with international media since assuming office in January, as captured in a Bloomberg report, SFC Chief Executive Officer Julia Leung revealed that Hong Kong would embrace enabling retail-investor access to crypto-focused ETFs with open arms.

We welcome proposals using innovative technology that boosts efficiency and customer experience.” Leung said, adding, “We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”

According to Leung, Hong Kong’s move to possibly allow retail exposure to digital assets is pegged on the availability of a robust, comprehensive regulatory framework.

Although the region inaugurated a dedicated crypto regulatory framework in June this year to woo companies and protect investors, the regime was recently put to the test by the JPEX crypto exchange blowup. This multimillion-dollar scandal ensnared about 2,600 victims.

While Leung refused to comment on the ongoing probe into the JPEX exchange, the CEO hinted that the incident could prompt the regulatory landscape to tighten.

As these deliberations unfold, Hong Kong has already taken proactive steps to evolve with the crypto industry and open up more access to the wider investing public. On November 2, the city announced guidelines for tokenized securities-related activities.

Stay updated on Visa’s CBDC pilot program in Hong Kong:
Visa Spearheads CBDC Pilot Program in Hong Kong

Read this article to learn more about the future of digital currencies in Hong Kong:
Hong Kong CBDC Roadmap: What’s Next for the e-HKD?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.