Hong Kong is stepping up its efforts to build an Asia-Pacific digital asset hub and is evaluating whether to allow exchange-traded funds (ETFs) that directly invest in cryptocurrencies, according to Bloomberg.
Julia Leung, chief executive of Hong Kong's Securities and Futures Commission, said retail investors would be considered for investment in these spot ETFs as long as regulatory concerns were met.
“We welcome proposals to use innovative technologies that improve efficiency and customer experience,” said Julia Leung. “As long as new risks are addressed, we are willing to try. Our approach is consistent regardless of the asset.”
Currently, both Hong Kong and the United States allow futures-based cryptocurrency ETFs, but their acceptance is relatively low compared to the size of the entire fund industry. There are currently three cryptocurrency futures ETFs in Hong Kong, namely Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF and CSOP Ethereum Futures ETF. Their total assets are about US$65 million.
