The Securities and Futures Commission (SFC) of Hong Kong has released a joint announcement indicating its readiness to accept virtual asset spot exchange-traded funds (ETFs). Executives from the Hong Kong Exchanges and Clearing Limited (HKEX) have also voiced their support for this development, stating that HKEX is prepared to embrace the investment opportunities presented by ETFs.
The SFC’s joint announcement highlights the following points:
1. The SFC and the Hong Kong Monetary Authority have received an increasing number of inquiries regarding virtual asset-related products.
2. The SFC has already issued licenses for virtual asset platforms and has approved virtual asset futures ETFs.
3. With the SFC’s approval of virtual asset futures ETFs, it is also prepared to accept virtual asset spot ETFs.
4. The SFC emphasizes that it will update its policies in accordance with the latest market developments.
From the joint announcement, it is evident that the SFC will continue to impose restrictions on virtual asset-related products. The SFC suggests that additional investor measures should be applied to complex products, such as a “virtual asset ETP of non-derivative products overseas,” which should only be sold to professional investors.
Furthermore, the sale of virtual asset-related products to retail investors will depend on the individual jurisdiction, exchange, or product sales restrictions.
Despite these regulations, it appears that HKEX is ready to embrace these products. Brian Roberts, Head of Securities Market Development at HKEX, stated in response to the SFC’s announcement that he welcomes the publication of the SFC’s policies. He believes that this development will position Hong Kong as the first market in Asia to allow the listing of virtual asset spot ETFs, strengthening its position as a leading digital asset center in the region and supporting the continued development of Hong Kong as the preferred ETF market in Asia.
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SFC
HKEX
Spot ETF
Securities and Futures Commission