Hong Kong Regulator Set to Allow Retail Investors Access to BTC, Ether ETFs

07/12/2022
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Exchange-traded funds (ETFs) that follow cryptoasset futures have been proposed to be made available to regular investors in Hong Kong, and the leading securities regulator in the city has indicated that it would go through with these plans.

The Securities and Futures Commission (SFC) has previously released a “consultation paper” that includes suggested guidelines and regulations for cryptocurrency exchange-traded funds (ETFs). In addition to this, Julia Leung, the Deputy Chief Executive of the Securities and Futures Commission of China, was quoted as saying that the organization was “actively looking to set up a system to authorize ETFs that provide mainstream virtual assets with appropriate investor guardrails.” FT Chinese reported that statement.

She went on to say that the new “system” will “provide investors with access to mainstream virtual assets with proper investor protection measures in place.” Those were her exact words. Leung also said that the Securities and Futures Commission (SFC) would initially only let ordinary investors to put money into exchange-traded funds (ETFs) that invest in bitcoin (BTC) and ethereum (ETH) futures. ETFs that are only permitted to be traded on the Chicago Mercantile Exchange will be approved by the regulatory body.

Leung was giving a presentation on fintech at an event in Hong Kong at the time. At the beginning of this year, the regulatory body made a joint statement with the Hong Kong Monetary Authority, which serves as the city’s central bank. The statement made a reference to the possibility of providing ordinary investors with access to a “limited suite” of financial instruments that are associated with cryptocurrencies.

An official from the SFC stated that “growing investor safeguards” meant that cryptocurrency exchange-traded funds (ETFs) posed less of a danger than they formerly did for investors who were not professionals.

Hong Kong: Edging Toward Bitcoin and ETH ETFs

Hong Kong: Moving Toward Exchange-Traded Funds for Bitcoin and Ethereum

The Securities and Futures Commission of Singapore (SFC) said in an official statement that in order for exchange-traded funds (ETFs) to be eligible, they would need to “have a good track record of regulatory compliance.” It was also said that managers will be required to provide evidence that they have managed ETFs or other comparable investment products for a minimum of three years.

Before beginning operations in Hong Kong, managers would also be “expected to carry out extensive investor education,” according to the regulatory body that imposed this provision.

At the beginning of this month, the president of the Chinese central bank said that the organization was collaborating with the Hong Kong Monetary Authority on the development of cross-border digital yuan capabilities.

Compiled by Coinbold

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