Hong Kong Outlines New Rules For Crypto Futures ETF Issuers

The Securities and Futures Commission of Hong Kong (SFC), met Monday. published A detailed list of requirements that exchange-traded funds managers must meet in order to list their crypto products within the city.

The circular stated that the SFC was actively investigating a system that would allow investment products to be authorized. It would also meet investor demand with appropriate safeguards for investor protection.


Virtual assets products are required to meet the requirements of the SFC for any ETF issuer aspiring regulatory approval to list futures crypto products in Hong Kong.


Furthermore, virtual assets futures ETF issuesrs have a solid track record of regulatory compliance and a proven track-record of at least three consecutive years of ETF management.


ETF issuers are required to confirm virtual asset ETFs’ liquidity and demonstrate that they can manage contracts and will handle roll costs. 


Only Bitcoin futures or Ether futures can be traded on Chicago Mercantile Exchange. Notable SFC. The Securities and Futures Commission said that it would look into expanding the eligibility of virtual assets futures markets, if necessary.


Another requirement was that the virtual assets ETF management company must allow for flexibility in portfolio configuration, rolling strategies, and handling market uprisings. It is also important to educate investors before the VA Futures ETF launches in Hong Kong.


SFC advised that net derivative exposure should not exceed 100% the ETF’s total net assets value. The note included the product key fact statement for VA Futures ETF. It contains upfront disclosures of the investment objective, and the critical risks that are associated with investments in VA futures.


The HKSAR government released Monday’s latest policy statement on the outlook for virtual asset development. Emission of tokenized green bond preparation of the digital Hong Kong Dollar.

Source: Shutterstock



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