Hong Kong’s Securities and Futures Commission (SFC) is prepared to authorize funds with direct exposure to digital assets, including spot virtual asset exchange-traded funds (ETFs), according to the South China Morning Post. The report cited a circular jointly issued by the securities regulator and the Hong Kong Monetary Authority, the city’s central bank.
Neil Tan, managing partner at local fintech consulting firm Tsunami Advisors and chairman of the FinTech Association of Hong Kong, commented that “this move puts Hong Kong in a leading position in the global crypto landscape.” Tan argued that spot crypto ETFs are “essentially a Web3 asset in a Web2 wrapper.” They allow traditional investors to gain access and exposure to the crypto market.
Last October, Hong Kong announced its goal to become a global virtual asset hub. Since then, the authorities have implemented a new regulatory regime for centralized exchanges, allowing licensed platforms to accept retail investors. Only two companies have received licenses, and nine are awaiting application approvals.
