As the launch of a Bitcoin spot ETF in the United States appears increasingly certain in early January, Hong Kong has recently opened up its Bitcoin spot ETF.
The Securities and Futures Commission (SFC) of Hong Kong has called for stricter requirements from cryptocurrency ETF issuers. According to the new regulations, ETF operators must satisfy three major conditions to ensure compliance and secure operation within the framework set by the SFC.
- A proven track record of regulatory compliance as an asset management or asset management enterprise.
- Possession of at least one employee with experience in managing cryptocurrencies and related products.
- Ownership of Hong Kong’s Type 9 license, meeting the conditions of “Terms and Conditions for Recognized Jurisdiction Regulated Entities Engaging in Virtual Asset Portfolio Management.”
Furthermore, the underlying assets of the virtual asset spot ETFs must be virtual assets that retail users can trade on authorized exchanges in Hong Kong. Currently, this means that only Bitcoin (BTC) and Ethereum (ETH) spot ETFs can be issued.
