Regulators in Hong Kong say they’re giving serious consideration to allowing spot cryptocurrency exchange-traded funds (ETFs).
The Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA) said in a joint statement that they are open to receiving applications for spot crypto ETFS from fund and asset managers.
Hong Kong has been loosening its approach to cryptocurrencies in recent years and regulators have said in the past that they want to become a hub for digital assets.
SFC Chief Executive Officer (CEO) Julia Leung said in November of this year that the regulator was moving toward allowing retail investors to buy spot crypto ETFs.
Hong Kong’s consideration of spot crypto ETFs comes as speculation mounts that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin (BTC) ETF in the New Year.
Expectations for Bitcoin and other crypto ETFs has largely driven the rally in digital tokens throughout 2023.
Bitcoin, the largest cryptocurrency by market capitalization, has gained 164% in 2023 and currently trades at $43,750 U.S.
