The chief operating executive at Hong Kong-based crypto exchange HashKey informed the local media that over ten asset managers are considering spot crypto exchange-traded funds. Livio Weng is optimistic that Hong Kong will witness a flurry of activity as the fund companies pursue the launch of spot crypto ETFs in the city.
Weng considered that the Hong Kong regulatory framework is of age and attractive to the fund companies seeking to roll out the crypto ETFs within the administrative region.
Fund Companies Eye Hong Kong for Spot Crypto ETFs
The operations head at HashKey revealed in an interview reported by Caixin on Wednesday, January 10, that an estimated ten asset managers are looking into the possible unveiling of spot crypto ETFs in Hong Kong.
The publication by the Chinese financial news platform indicated that the fund managers mulling spot crypto ETF bids are of diverse origins. They hail from Europe, Asia, and others with Chinese capital backing.
Weng estimated that seven or eight of the fund companies have already established contact with the Securities and Futures Commission (SFC). Such already established teams designing the investment products.
Weng’s pronouncement comes after the widely anticipated approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) on Wednesday. The trading of the spot Bitcoin ETFs is projected to start on Thursday.
HashKey, which recently received approval from the SFC to run retail crypto trading services, confessed to considering participation in the spot crypto ETFs. It is mulling participation through crypto custody service or ETF-related crypto transactions.
Hong Kong Preparedness for Spot Crypto ETFs
Hong Kong has, in recent months, portrayed preparedness to usher spot crypto ETFs. A joint announcement by the Hong Kong Monetary Authority (HKMA) and SFC in December confirmed the revision of the existing policy. The region’s de facto central bank issued a circular that mirrored the publication by the SFC to address requirements for spot crypto ETFs.
The SFC indicated in the December circular that crypto-related transactions executed by spot crypto ETFs are restricted to the SFC-licensed platforms and financial institutions authorized by HKMA. Unveiling spot crypto ETFs in the city will ultimately fuel an interesting development akin to the United States’ six-month journey.
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