Hong Kong’s financial market regulator is considering giving retail clients access to spot crypto ETFs if local virtual asset service providers (VASP) comply with regulatory requirements.
Julia Leung, CEO of the Securities and Futures Commission of Hong Kong (SFC), revealed in an interview with Bloomberg that the regulator welcomes the introduction of innovative technologies that increase efficiency and enhance customer service. The agency is willing to give retail investors access to spot crypto ETFs.
Leung said access to investment instruments in the region could soon be available to all VASP clients as long as they comply with regulatory requirements. She emphasized that only the elimination of risks for investors will allow the SFC to expand access to crypto ETFs.
Hong Kong’s regulator recently closed access to some crypto products, particularly derivatives, ETPs, and ETFs, to inexperienced investors, requiring VASPs to assess their users’ expertise.
However, Leung added that the regulator realizes that spot crypto ETFs are widely popular among various investors, and once Bitcoin and Ethereum ETFs are approved in the U.S., their popularity will be even greater. Therefore, the SFC is gearing up to expand the availability of this type of investment product, expecting a surge in demand.
The U.S. officials require the Securities and Exchange Commission (SEC) to approve applications for Bitcoin ETFs, but the regulator is vigorously stalling the process. It also became known that BlackRock’s exchange-traded fund was added to the DTCC listing, which analysts see as evidence that the application will be approved soon. Against this news, BTC soared sharply.
