Hong Kong Explores Retail Access to Spot Crypto ETFs: Report

Hong Kong, a historic financial hub, shifted focus to crypto retail, departing from its traditional money exchange reputation. The city is discussing involving retail investors in a crypto world through spot exchange-traded funds.

This act is also in line with the aspirations of Hong Kong seeking to affirm its status as a vibrant crypto center. Hong Kong is contemplating giving regular investors access to spot exchange-traded funds (ETFs) that invest directly in cryptocurrencies.

Julia Leung, chief executive at SFC, stated in an interview with Bloomberg that the commission assesses wholesale consumer goods like retail investment products.

At the same time, it welcomes suggestions on utilizing modern technologies in improving operations and client services. Leung, furthermore, stated: “Sure, let us try it as we tackle new risks and consistently with any asset.”

Hong Kong’s Crypto ETF Expansion & Licensing Updates

Leung alluded to the Hong Kong Securities and Futures Commission’s (SFC) amended recommendations issued last month. These guidelines expanded the scope of investors engaging in Crypto ETF operations. This development has significant implications for the industry.

Hong Kong is contemplating giving regular investors access to spot exchange-traded funds (ETFs) that invest directly in cryptocurrencies.

According to a circular by the regulator, these intermediaries must subject their clients to a knowledge test on virtual assets before any transactions. This test does not apply to institutional professional investors and corporate professional investors.

Currently, Hong Kong has listed 3 crypto ETFs based on futures. These are the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF.

The city introduced a regime for issuing crypto licenses in June and allowed licensed exchanges to trade with ordinary consumers. The regulator has already given such permits to Hashkey and OSL.

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Hong Kong is actively exploring innovative financial products and services, positioning itself as a trailblazing crypto destination for retail investors. This move takes advantage of its well-established economic infrastructure and regulatory framework.