Published: 29.03.2022
Article reading time:
2 minutes.
Fund manager Huobi Tech has filed an application with the Hong Kong Securities and Futures Commission to launch a traded fund pegged to cryptocurrencies.
According to local media reports, Huobi Tech intends to introduce a financial product for retail investors in Hong Kong that tracks the price of bitcoin and other cryptocurrencies. According to an application filed with the Hong Kong Securities and Futures Commission (SFC), this cryptocurrency ETF will be available to investors with less than HK$8 million (about $1 million) in assets. Huobi Tech senior vice president Romeo Wang said the company intends to work closely with regulators to obtain the necessary licenses and approvals.
The Hong Kong legislature is trying to tighten regulation of the cryptocurrency industry. In February, they proposed the introduction of mandatory licensing for virtual asset service providers (VASPs) that would only be able to work with qualified investors.
In addition, the SFC and the Hong Kong Monetary Authority (HKMA) have banned unqualified investors from investing in spot ETFs pegged to cryptocurrencies. In this regard, retail investors hope that if this ETF is approved, they will be able to legally work with virtual assets, even if it is under the supervision of regulators.
Brown Brothers Harriman ETF Asia Lead Chris Pigott says financial products are more credible when it comes to investor protection, pricing transparency and possible market manipulation. As more capital is flowing into virtual assets, Hong Kong fund managers are trying to expand their offerings to investors. Therefore, the launch of cryptocurrency ETFs is a completely natural step for Hong Kong.
Recall that last month, Independent Strategy analysts called Hong Kong a potential “testing ground” for conducting tests with the digital currency of the People’s Bank of China (PBOC).
Source: Bits
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