Asia’s First Launch? Hong Kong Securities and Futures Commission: Ready to Accept Virtual Asset Spot ETF Products

The Securities and Futures Commission (SFC) of Hong Kong has issued a joint circular stating that it is ready to accept virtual asset spot ETFs. Executives of the Hong Kong Stock Exchange have also commented on this news, stating that the exchange is prepared to embrace ETF investment opportunities.

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SFC: Ready to Accept Virtual Asset Spot ETFs
HKEX Executives: Prepared to Embrace ETF Investment Opportunities

SFC: Ready to Accept Virtual Asset Spot ETFs
The Securities and Futures Commission (SFC) of Hong Kong has issued a joint circular regarding virtual asset-related activities, stating the following:
The SFC and the Hong Kong Monetary Authority have received increasing inquiries regarding virtual asset-related products.
The SFC has already issued virtual asset platform licenses and approved virtual asset futures ETFs.
With the SFC’s approval of virtual asset futures ETFs, it is also ready to accept virtual asset spot ETFs.
The SFC emphasizes that it will update relevant policies based on the latest market developments.

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From the joint circular, it can be inferred that the SFC will still impose restrictions on virtual asset-related products. The SFC states that additional investor measures should be applied to complex products, such as “overseas non-derivative virtual asset ETPs,” which may be considered complex products 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 also depend on individual jurisdictions, exchanges, or product sales restrictions.
Nevertheless, it appears that the Hong Kong Stock Exchange is ready to embrace such products.

HKEX Executives: Prepared to Embrace ETF Investment Opportunities
According to Hong Kong Commercial Daily, Brian Roberts, Head of Securities Product Development at HKEX, commented on the SFC announcement as follows:
We welcome the publication of the SFC’s relevant policies, which make 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 center in the region and support the continued development of Hong Kong as the preferred ETF market in Asia.
He also emphasized that HKEX is prepared to seize the opportunities brought by thematic investments such as spot ETFs. HKEX will work closely with issuers and stakeholders to successfully introduce these new products to the Hong Kong ETF market.

(SFC: “In Application” Exchanges Limited to Four, Complaint Channel Established in Response to JPEX Case)

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Further Reading
Securities and Futures Commission: Four Applicants Applying for Licenses – HKbitEX, HKBGE, HKVAX, and Victory
SFC: “In Application” Exchanges Limited to Four, Complaint Channel Established in Response to JPEX Case