One of Hong Kong’s chief regulators is mulling spot ETFs for crypto, with the funds adhering to the necessary regulations prevalent in the region.
Crypto ETFs have made ripples in the crypto space recently. Though the US is in the spotlight for whether it will approve its crypto ETFs, another region has jumped into the fray. Hong Kong, known for being a crypto hub, has recently stated its intentions to allow spot ETFs for crypto. The news has created a stir after one of its regulators made the comments on the crypto ETFs.
Julia Leung, CEO of Hong Kong’s Securities and Futures Commission, made the remarks. She said, “We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”
The likelihood of the crypto ETFs could have caused a positive murmur due to the recent expectations set by the US crypto ETFs. Several reputed investment firms have filed applications for their spot crypto ETFs in the country. With expectations rising for their approval, the crypto market has also surged.
Experts believe such crypto ETFs could help in expanding crypto adoption for retail investors. With access to exchange-traded funds (ETFs) being common, crypto adoption could get a boost with ETFs.
Leung also claimed they could allow wider participation from public investors as the crypto ecosystem develops. Currently, both Hong Kong and the US allow futures-based crypto ETFs.
Meanwhile, Hong Kong has also been active on other fronts of the crypto space. It has been developing its central bank digital currency along with private players. Senior officials of the country have actively supported the crypto sector as well.
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