Hong Kong Securities Commission Ready to Accept Applications for Cryptocurrency Spot ETFs

Read about the Hong Kong Securities and Futures Commission's readiness to accept cryptocurrency spot ETF applications, a move that could transform the crypto market.

Understand the implications of this policy update and the heightened anticipation in the global finance sector, especially with the potential influx of investment in the near future.

Hong Kong Securities and Futures Commission Announces Readiness for Cryptocurrency Spot ETF Applications

The Hong Kong Securities and Futures Commission (SFC) announced on December 22, 2023, through a public circular, that it is prepared to accept applications for cryptocurrency spot Exchange-Traded Funds (ETFs).

The document released provides insights into the policies of the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) regarding “intermediary activities related to virtual currencies.”

It elaborates on policies concerning investment products related to virtual currencies, cryptocurrency trading services, crypto asset management services, and advisory services related to crypto assets.

Increasing Inquiries and Policy Review by SFC and HKMA

According to the SFC’s announcement, there has been a recent increase in inquiries from intermediaries about the “sale of crypto-asset-related investment products to clients.”

In response, the SFC and HKMA have reviewed their existing policies for intermediaries wishing to offer crypto-asset-related services.

The updated policy, considering the latest market trends, states that “the SFC has authorized crypto asset futures ETFs and is now ready to accept applications for the authorization of other funds with exposure to crypto assets, including crypto asset spot ETFs.”

Anticipation in the Cryptocurrency Industry and Experts’ Views

In the United States, several major companies have already applied for Bitcoin spot ETFs.

They are currently making improvements to address the concerns of the U.S. SEC, raising expectations in the cryptocurrency industry that a Bitcoin spot ETF may soon be approved in the U.S.

Experts suggest that the launch of a Bitcoin spot ETF in the U.S. could lead to the influx of trillions of dollars into the cryptocurrency industry.

Similarly, the introduction of a Bitcoin spot ETF in Hong Kong is expected to attract even more investors, making the future developments in this area highly anticipated.

>> Stay updated with the latest articles on ETFs here.