1 year ago
Hong Kong is examining allowing the motorboat of spot cryptocurrency exchange-traded funds (ETFs), fixed that the risks of these instruments are addressed. In a caller interview, Julia Leung, CEO of the Hong Kong Securities and Exchange Commission, stated that the absorption of the organization’s attack was “consistent” careless of the asset.
Hong Kong Open to Allowing Trade of Spot Crypto ETFs
Hong Kong whitethorn beryllium unfastened to allowing the motorboat of trading spot cryptocurrency-based exchange-traded funds (ETFs). According to Julia Leung, CEO of the Hong Kong Securities and Exchange Commission, the metropolis is considering permitting the issuance of specified products, fixed that the risks are adequately managed.
In a caller interview, Leung stated:
We invited proposals utilizing innovative exertion that boosts ratio and lawsuit experience. We’re blessed to springiness it a effort arsenic agelong arsenic caller risks are addressed. Our attack is accordant careless of the asset.
While the metropolis already allows the trading of futures-based cryptocurrency ETFs, the scope has been limited, with lone 3 offerings managing astir $65 million, a fig that is dwarfed by the wide size of the section ETF market.
In addition, Hong Kong is besides taking steps to let the issuance of tokenized real-world assets for retail investors, opening the way for a larger marketplace to entree these instruments.
On this, Leung explained:
As the crypto ecosystem evolves step-by-step to the constituent wherever we’re comfortable, past we’re blessed to unfastened up much entree to the wider investing public.
Hong Kong vs U.S.
The unfastened stance of Hong Kong contrasts with the posture of regulators successful the U.S., which person repeatedly denied support for the motorboat of a spot bitcoin ETF. Nonetheless, a ineligible triumph obtained successful October by Grayscale, successful which the U.S. Court of Appeals for the D.C. Circuit ordered the U.S. Securities and Exchange Commission (SEC) to reconsider Grayscale’s ETF conversion application, has experts optimistic astir an upcoming support of a spot bitcoin ETF.
United States Securities and Exchange Commission Chair Gary Gensler precocious acknowledged that his enactment is presently sitting connected apical of 8-10 ETF applications. Gensler stressed the committee would reappraisal each 1 without prejudgement.
Lawmakers person besides pushed against the SEC’s actions. In September, U.S. Representatives Mike Flood, Tom Emmer, Wiley Nickel, and Ritchie Torres directed a missive to the SEC, asking for the swift support of a bitcoin ETF and stating that the institution’s presumption was “untenable” moving forward.
What bash you deliberation astir Hong Kong and its posture connected spot Bitcoin ETFs? Tell america successful the comments conception below.
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