Ming Pao reported on October 31 that Hong Kong is the latest region to announce plans to launch a cryptocurrency exchange-traded fund (ETF) targeting mainstream cryptocurrencies such as Bitcoin (BTC).
According to Leung Fung Yee, CEO of the Hong Kong Securities and Futures Commission (SFC), the agency has been actively working on establishing a mechanism to authorize the ETF.
In addition, the official stated that the mechanism is primarily concerned with enacting the necessary legislation to govern the ETF.
Although the crypto sector has challenges such as high volatility, Yee stated that the decision to investigate an ETF came after the initial concerns about the space were manageable.
Furthermore, Yee stated that the ETF products would be subject to additional requirements regarding management companies’ disclosure of investment strategies and investor education.
The SFC announced in a statement that it would hold a public consultation session to discuss how retail investors can gain access to cryptocurrencies.