Hong Kong is reportedly considering the possibility of allowing spot cryptocurrency exchange-traded funds (ETF).
Julia Leung, CEO of the Securities and Futures Commission in Hong Kong, writes this in a new Bloomberg report contours what it would take for spot crypto ETFs to be authorized in the city-state.
“We welcome proposals that use innovative technology that improves efficiency and customer experience. We’re happy to try it, as long as new risks are addressed. Our approach is consistent, regardless of the asset.”
According to Bloomberg, Hong Kong currently only allows futures-based crypto ETFs and listed products include the Samsung Bitcoin Futures Active and a Bitcoin (BTC) and Ethereum (ETH) futures ETF issued by CSOP Asset Management.
The possibility of spot crypto ETFs being approved in Hong Kong comes at a time when Hong Kong’s ambitions to become a leading digital asset hub are in high gear, the report said.
Earlier this year, Hong Kong rolled out a regulatory framework for virtual assets. On the cryptocurrency regulatory framework, Leung said:
“Hong Kong’s comprehensive regulatory framework for virtual assets follows the principle of ‘same activities, same risks, same rules’ and aims to provide robust investor protection and manage key risks.” This allows the industry to develop sustainably and support innovation.”
Reports also emerged in June that the Hong Kong Monetary Authority had urged banks in the city-state to offer their services to licensed crypto exchanges. In February, it was also reported that China was allegedly supporting Hong Kong’s plans to allow both institutional and retail investors to trade crypto assets.
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