Hong Kong’s Securities and Futures Commission (SFC) and the Monetary Authority (HKMA) have announced that they are ready to accept applications for spot crypto exchange-traded funds (ETFs). In a circular released on December 22, the regulators stated that they have updated their policies to encourage the introduction of spot crypto ETFs in the market.
This move aligns with Hong Kong’s recent trend of embracing favorable regulations for the crypto industry. The country has positioned itself as a crypto-friendly hub and has introduced various initiatives to foster growth in the sector.
Spot-based ETFs have gained significant attention in the crypto community, with major financial players like BlackRock and Grayscale filing applications for spot-based Bitcoin ETFs with the U.S. Securities and Exchange Commission (SEC). However, the SEC has yet to approve any application and has postponed its decision until next year.
The SFC has outlined regulatory measures for Hong Kong ETFs. According to the regulator, transactions by the ETFs must occur through SFC-licensed crypto platforms or authorized financial institutions that comply with HKMA’s regulatory requirements. The SFC also specified that the fund’s trustee or custodian should only delegate crypto custody functions to an SFC-licensed VATP or entities meeting the crypto custody standards outlined by the HKMA.
For the valuation of spot virtual assets, fund management companies must implement an indexing method reliant on the trade volume of virtual assets across prominent trading platforms.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | ðŸ‡ðŸ‡° |
| Sentiment | positive |
| Relevance Score | 1 |
| People | None |
| Companies | BlackRock, SFC, Grayscale, HKMA |
| Currencies | Bitcoin |
| Securities | None |
