A circular was released jointly by the Securities and Futures Commission and the Hong Kong Monetary Authority advising the public that they are prepared to accept applications for crypto spot ETFs.
Applications for authorization of funds that have exposure to virtual assets are ready to be accepted by the Securities and Exchange Commission (SEC).
Both in-kind and cash subscriptions and redemptions are acceptable modes of payment to the regulatory body.
During the time that market players are waiting for the United States Securities and Exchange Commission to give its permission to the Spot Bitcoin Exchange-Traded Fund (ETF), Hong Kong regulators have given the investment product the go-ahead.
A joint circular was released by the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) to communicate their preparedness for applications to be submitted for the Spot cryptocurrency exchange-traded fund (ETF).
Applicants for spot cryptocurrency exchange-traded funds are given the go-ahead by Hong Kong authorities.
The authorities in charge of the financial sector said in a circular dated December 22 that they are ready to accept applications for the authorization of additional funds that have exposure to virtual assets. These funds include exchange-traded funds that are categorized as virtual asset spot funds.
The joint circular throws light on the fact that both regulatory agencies in Hong Kong have evaluated their current rules for bitcoin Spot ETFs and signified their readiness to review cryptocurrency Spot ETFs. This brings to light the fact that both agencies have reviewed their policies.
This circular makes it abundantly apparent that it is superior to others that came before it and that it outlines the standards that must be met by intermediaries in order for them to distribute items that are associated with cryptocurrencies. The circular establishes the norms of behavior that are anticipated from issuers who intend to engage in the distribution of Spot Crypto ETFs that have been authorized by regulatory bodies.
The United States Securities and Exchange Commission (SEC) has placed a strong emphasis on in-cash redemption for Spot Bitcoin exchange-traded funds (ETFs). However, the Securities and Exchange Commission (SFC) has informed investors that in-kind and in-cash subscriptions and redemptions are both permitted. A licensed Virtual Asset Trade Partner that satisfies the crypto custody requirements specified by the Hong Kong Monetary Authority (HKMA) shall be the only entity that trustees or custodians of exchange-traded funds should transfer their control over cryptocurrency custody to.
