Hong Kong is Considering Spot Crypto ETFs

Reported by Bloomberg, Hong Kong is assessing whether to allow exchange-traded funds that invest directly in crypto as officials step up efforts to create an Asia-Pacific digital-asset hub.

The city is weighing retail-investor access to such spot ETFs providing regulatory concerns are met, Securities and Futures Commission Chief Executive Officer Julia Leung said.

“We welcome proposals using innovative technology that boosts efficiency and customer experience,” Leung said, “We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”

Both Hong Kong and the US currently allow futures-based crypto ETFs, but the take-up has been modest compared to the overall size of the fund industry. The Asian city current lists the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures ETFs. They have combined assets of about $65 million.