According to a new joint statement from the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), the regulators are preparing to accept Spot Crypto ETF applications. The statement arrives as the United States is likely to issue its first ever approval of a spot Bitcoin ETF in 2024.
The joint statement noted the rapid evolution in the digital asset industry since its “professional investors only” approach in 2018. Moreover, the development comes as Hong Kong has been slowly shifting its crypto approach throughout 2023. Now, they could be poised to deliver the investment product to consumers in the country.
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Hong Kong Regulators Prepared to Accept Crypto ETF Applications
Over the last several months, the talk of a spot Bitcoin ETF in the United States has dominated discussions. With more than a dozen applications and consistent dialogue, many expect the US Securities and Exchange Commission (SEC) to greenlight the product. Subsequently, it appears as though other countries may well follow suit.
Indeed, Hong Kong regulators have issued a statement expressing their preparedness to accept spot crypto ETF applications. Specifically, both the SFC and HKMA had been part of the important joint statement. Moreover, they expressed their understanding of the rapidly evolving digital asset landscape.
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“The virtual asset landscape has evolved rapidly and begun to expand into mainstream finance,” the regulators stated. Thereafter, the SFC noted they are “prepared to accept applications for the authorization of other funds with exposure to virtual assets, including virtual asset spot exchange traded funds (VA spot ETFs).”
Over the last several months, the SFC has seen changes in its policies to welcome more investors into the digital asset space. October saw the regulator alter its rule book to allow more investors to enter the crypto spot trading market. Overall, Hong Kong has clearly shown its willingness to welcome greater diversification. Specifically, in its regulations regarding digital asset investment activities.