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Hong Kong’s SFC wants to permit cryptocurrency futures ETFs

A representative of the Securities and Futures Commission (SFC), Hong Kong’s financial sector regulator, stated on Monday that the organization is actively working to create a framework that will permit exchange-traded funds (ETFs) based on digital assets to be openly listed and traded in the city.

According to Julia Leung, the department’s chief executive officer and executive director of SFC’s intermediate sector, a circular would be released later on Monday to provide further information about the strategy.

ETFs are a type of pooled security that track particular assets. These assets can be a collection of stocks or bonds that cover an industry, a single commodity, or other investments.

The Chicago Mercantile Exchange-traded Bitcoin futures and Ether futures will be the only underlying assets available for the ETFs at first.

According to Leung, The SFC has been actively looking to establish a framework to license ETFs which give exposure to common virtual assets with proper investor guardrails.

Fintech Week 2022, Hong Kong’s premier cryptocurrency event, officially begins on Monday. For Hong Kong to declare its return as a crypto hub, the event is viewed as a turning point.

Leung also talked on the SFC’s regulatory considerations for tokenized securities and whether or not to permit ordinary investors to participate in the investment market, in addition to crypto futures-based ETFs.

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