Hong Kong plans to allow virtual asset ETFs to be listed, becoming the first in Asia

The Hong Kong Securities and Futures Commission announced that it is ready to accept applications for approval of funds such as virtual asset spot ETFs, making Hong Kong likely to become the first market in Asia to accept the listing of virtual asset spot ETFs such as Bitcoin and Ethereum.

According to reports from China News Service and Ta Kung Pao, the Hong Kong Securities and Futures Commission issued a circular to the industry on Friday (December 22) to announce the above news. However, the circular reminded that although virtual assets are becoming more and more popular in some parts of the world, the regulatory situation around the world is still different, so virtual asset spot still has problems such as lack of pricing transparency and potential market manipulation.

The circular said that since retail investors may generally not understand the above risks, virtual asset products are "likely to be regarded as complex products". The circular also emphasized that virtual asset spot funds approved by the Hong Kong Securities and Futures Commission must buy and sell virtual asset spot on virtual asset trading platforms licensed by the Hong Kong Securities and Futures Commission.

The Hong Kong Stock Exchange welcomes the announcement of the SFC. Robin Lo, Head of Securities Product Development at the Hong Kong Stock Exchange, said that the SFC's announcement means that Hong Kong will become the first market in Asia to allow the listing of virtual asset spot ETFs, strengthening Hong Kong's position as a leading digital asset center in the region and supporting Hong Kong's continued development as Asia's preferred ETF market.

Robin said that HKEX is ready to seize the opportunities brought by thematic investment and will work closely with issuers and stakeholders to smoothly introduce such new products to the Hong Kong ETF market. HKEX is committed to further enhancing the attractiveness and competitiveness of Hong Kong as an international financial center and bringing more diversified choices to the market and investors.