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Asia's first? Hong Kong Securities and Futures Commission: Ready to accept virtual asset spot ETF products

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The Securities and Futures Commission (SFC) of Hong Kong has issued a joint statement indicating that it is ready to accept applications for virtual asset spot ETFs. Senior executives of the Hong Kong Stock Exchange have also commented on this news, stating that the exchange is prepared to embrace the investment opportunities presented by ETFs.

SFC: Ready to Accept Virtual Asset Spot ETFs

The Securities and Futures Commission (SFC) of Hong Kong released a joint circular on virtual assets, stating:

  1. The SFC and the Hong Kong Monetary Authority have received increasing inquiries about virtual asset-related products.

  2. The SFC has already issued licenses for virtual asset platforms and approved virtual asset futures ETFs.

  3. With the SFC's approval of virtual asset futures ETFs, it is now ready to accept virtual asset spot ETFs.

The SFC emphasized in point three that it will update relevant policies based on the latest market developments.

From the joint circular, it is evident that the SFC will continue to impose restrictions on virtual asset-related products. The SFC stated that additional investor protection measures should be applied to complex products, such as a "virtual asset ETP of overseas non-derivative products," which may be considered complex and should only be sold to professional investors.

In addition to regulations on complex products, the sale of virtual asset-related products to retail investors will depend on individual jurisdictions, exchange restrictions, and product sales limitations.

Despite this, the Hong Kong Stock Exchange seems prepared to welcome such products.

Hong Kong Stock Exchange Executive: Ready for ETF Investment Opportunities

According to the Hong Kong Commercial Daily, Brian Roberts, Head of Securities Product Development at the Hong Kong Stock Exchange, commented on the SFC announcement:

We welcome the SFC's policy announcement, making Hong Kong the first market in Asia to allow the listing of virtual asset spot ETFs. This will strengthen Hong Kong's position as a leading digital asset hub in the region and support the continued development of Hong Kong as the preferred ETF market in Asia.

He also emphasized that the Hong Kong Stock Exchange is prepared to seize the opportunities brought by spot ETFs and other thematic investments, working closely with issuers and stakeholders to smoothly introduce these new products to the Hong Kong ETF market.

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