Huobi Firms Up Crypto ETF Plans for Retail Investors in Hong Kong

Huobi Technology will launch ETFs to track cryptocurrency for retail investors in Hong Kong. According to reports, the company has submitted its proposal to Hong Kong’s Securities and Futures Commission and is waiting for approval.

Huobi’s ETF Plans

According to a South China Morning Post report, the company plans to make its ETFs accessible to retail investors who have less than HK$8million (US$1million) in assets. Existing law permits crypto exchanges and companies to offer digital assets services only to professionals investors.

According to media reports, a top company official stated that the crypto ETF for retail investors would be regulated in Hong Kong and all trading and redemptions will take place in the city-state to offer “better protection for investors.”

Hong Kong-listed fund manager will “keep close and positive communication” with financial regulators, including SFC, in order to obtain licenses and approvals.

Huobi Tech is one the four Hong Kong fund managers that the SFC has allowed to offer crypto-related products for professionals investors. The company hopes that the agency will relax its professionals-only restriction and allow it to release its crypto-tracking ETFs to retail investors.

The SFC has relaxed its guidelines regarding the sale of certain virtual products and it is optimistic that this will ease the professionals-only stance. These guidelines were established by the Joint Circular of Intermediaries’ Virtual Asset Related Activities in January 2011.

A bill amendment is being considered that would prohibit retailers from trading BTC or other digital coins directly.

Crypto ETFs in Other Countries

Purpose Bitcoin ETF has now increased its bitcoin holdings to 36,000. This is a 23% increase in YTD and a new record. Purpose Bitcoin ETF was launched in February 2021. It is the first spot bitcoin ETF and saw its assets under management (AUM), grow to $1 billion in just one month.

The U.S. Securities and Exchange Commission has yet to allow a spot cryptocurrency ETF. It did however allow ProShares Bitcoin Strategy ETF to be traded in October 2013. The fund amassed $1.1 billion in AUM in just two trading days. Recent action by the SEC was to reject proposals for bitcoin ETFs from NYDIG and Global X.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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