[NEWS] Hong Kong authorities considering approving spot ETF for Bitcoin and other cryptocurrencies

The Hong Kong Securities and Futures Commission (SFC) may approve a cryptocurrency spot ETF. Bloomberg reported on the 6th.

According to the report, SFC CEO Julia Leung said, "We are considering allowing retail investors to access a cryptocurrency spot ETF, provided that regulatory concerns are addressed."

She also said, "We welcome proposals that use innovative technology to improve efficiency and customer experience," and expressed her enthusiasm, saying that she is "willing to take on the challenge" after considering the risks. She said that this approach is not limited to specific cryptocurrencies.

Cryptocurrency futures ETFs are already listed in Hong Kong. Samsung's "Samsung Bitcoin Futures Active," "CSOP Bitcoin Futures," and "CSOP Ether Futures ETF" are being traded, and the asset value of these is about 65 million dollars (about 9.7 billion yen).

Hong Kong is promoting Web 3.0, and as part of that, it is aiming to become a "hub for cryptocurrencies." New cryptocurrency regulations came into force in June this year, and momentum is building for the full-scale development of the cryptocurrency market.

On the other hand, regulators are also busy dealing with the massive fraud allegations surrounding the unauthorized cryptocurrency exchange JPEX that occurred in September. In this incident, JPEX users were unable to withdraw their cryptocurrency assets, and asset holdings were falsified, causing damages of more than 26 billion yen.

In response to this, the SFC made public the names of license applicants, and also issued a statement that, as part of investor protection, complex cryptocurrency products should only be traded by qualified investors.

The United States is currently the focus of attention regarding cryptocurrency spot ETFs. There is growing expectation that a Bitcoin spot ETF, which has been applied for by several companies, including major asset management company BlackRock, will be approved, and this expectation is also reflected in the cryptocurrency market.

Currently, companies are reapplying one after another to increase the approval rate, and attention will continue to be focused on the SEC's actions.

In this situation, the fact that Hong Kong, one of the world's leading financial sectors, has a positive attitude toward a cryptocurrency spot ETF is a positive development for the cryptocurrency industry.

Source:Bloomberg
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