Crypto ETFs Could Gain Retail Access in Hong Kong, Says SFC CEO

Crypto ETFs Could Gain Retail Access in Hong Kong, Says SFC CEO

Crypto News – Hong Kong is currently exploring the possibility of allowing retail investors to access spot exchange-traded funds (ETFs) that directly invest in cryptocurrencies.

Julia Leung, the CEO of the Securities and Futures Commission, recently stated in an interview with Bloomberg that the regulatory body is actively evaluating retail investment products related to cryptocurrencies. The SFC is open to considering proposals that leverage innovative technology to enhance efficiency and the overall customer experience.

Leung emphasized a willingness to test these waters, provided that new risks associated with such investment products are properly addressed. She emphasized that the regulator’s approach remains consistent, irrespective of the type of asset under consideration.

This development follows an update to the SFC’s guidance on activities related to virtual assets for financial intermediaries. The guidance has expanded the scope of investors who can engage with cryptocurrency ETFs. According to a recent circular, intermediaries are now required to assess their clients’ knowledge of virtual assets before proceeding with any related transactions. Notably, institutional professional investors and qualified corporate professional investors are exempt from this knowledge test requirement.

As of now, Hong Kong has listed three futures-based cryptocurrency ETFs: the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF.

In June, the city officially implemented its cryptocurrency licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. The SFC has already granted these licenses to HashKey and OSL.