There are emerging pointers that Value Partners may start issuing ETFs connected to virtual assets in Hong Kong. Zhao Shande, senior strategist of Value Partners ETF business during an interview provided insight into this possibility.Â
In the interview, the executive discussed how the crypto market has matured due to orderly supervision. Consequently, he submitted that the company is likely to include virtual asset ETFs to its services in the near future.
Emerging Reports About Virtual Assets ETFs in Hong Kong
Meanwhile, Hong Kong in its bid to become a global virtual assets hub is set to permit investors to access exchange-traded funds (ETFs) that are connected to cryptocurrencies. The development surfaced on Friday after the Hong Kong Monetary Authority and some securities regulators released a joint statement.
According to the statement, there is an emerging headway that Hong Kong will start permitting investors to invest in ETFs linked to cryptocurrencies. Part of the product as per the circular will include spot crypto investment products. The move as revealed is targeted at growing the virtual asset industry in Hong Kong. However, firms aiming to provide spot crypto investment products must meet certain requirements.
These products as indicated must meet the predetermined standard set by Hong Kong regulators for mutual funds and other structured investment products. Further, the regulators through the statement provided insights into some of the guidelines. Foremost, according to the release, it is mandatory for product providers to have a reputable record of regulatory compliance.
Also, the regulations mandate that any company aiming to offer such service within Hong Kong must employ a capable staff member who has quality experience in asset management and other similar products. Meanwhile, the regulators added that it only permits firms to offer spot crypto investment products for some tokens. These tokens as disclosed are available for spot trading on registered crypto exchanges in the region.
How Crypto is Gaining Relevance in the Region
On the flip side, the recent development will further boost the reputation of the region as a hub for crypto investment. The region has gained more relevance among cryptocurrency enthusiasts and investors since it has established a new regulatory regime for crypto exchanges. With the new regime, Hong Kong provided a pathway for crypto firms to establish their presence in the region.
According to a Binbits report in March, Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui revealed that more than 80 crypto firms are aiming to expand their business into the region. He added that about 25 of these companies have made official consultations about their expansion target. The revelation underlines how the relaxed approach to crypto regulation in Hong Kong has encouraged firms to establish their presence in the region.
Nonetheless, despite how Hong Kong has emerged as a hub for crypto investment, regulators in the region have not let their guard down to protect investors against unregistered companies. Recently, the Hong Kong Securities and Future Commission (SFC) vowed to take regulatory actions against unregistered crypto firms in the region. More so, the regulators urged unregistered companies to stop misleading investors about their registration status. Likewise, the SFC emphasized that every crypto firm operating in the region must obtain authorization to avoid sanctions.