- Hong Kong securities regulator is reportedly considering a spot crypto ETF
- The move adds pressure to the U.S. as it delays spot Bitcoin ETF
According to the latest reports, Hong Kong is considering launching spot cryptocurrency exchange-traded funds (ETF). The move comes after authorities updated the city’s financial regulations in October, allowing retail investors to purchase spot crypto ETFs.
Hong Kong’s Securities and Futures Commission (SFC) CEO Julia Leung says the regulator welcomes proposals for innovative technology. Leung adds, “We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”
SFC says the latest move is in response to developments and enquiries from the industry. The move seeks to enable investors to deposit and withdraw digital assets through intermediaries and under appropriate safeguards.
The decision is a change of stance after the Hong Kong Securities’ regulator, in January, restricted retail investor’s access to spot crypto ETFs. The restriction meant that limited professional investors with at least $1 million or HKD8 million could invest in spot crypto ETF.
Hong Kong Adds Pressure To The U.S. Over Spot ETF
BitMEX co-founder Arthur Hayes believes Hong Kong’s entry increases competition with the U.S., which is good for Bitcoin. Coin Bureau added that the entry of other jurisdictions like Hong Kong pressures the SEC regarding a spot Bitcoin ETF approval.
SEC has rejected attempts by several crypto firms to register a spot Bitcoin ETF. Recently, a U.S. court made a final ruling invalidating the SEC’s rejection of a spot Bitcoin ETF filing by Grayscale. BlackRock and Fidelity are other asset managers that have filed for spot Bitcoin ETFs in the U.S.
