A Hong Kong-based fund manager, which is listed publically, intends to offer retail traders a crypto-tracking ETF (exchange-traded fund). The company, having been listed on the behalf of the Hong Kong Stock Exchange, has reportedly filed a proposal with the SFC (Securities and Futures Commission) for the crypto ETF thereof. The unique ETF will target retail investors who have less than HK$8M (nearly US$1M) in assets, as reported by South China Morning Post.
Romeo Wang – the company’s vice president – emphasized that a crypto ETF (which is regulated by Hong Kong-based watchdog) would provide enhanced security to investors. He added that at present they are vigorously operating with SFC as their collaborator with the expectation to keep positive communication in the provision of regulated products in crypto ETFs across the market.
Huobi is currently banking on the latest relaxation on the products of crypto ETF to be provided to the retail investors, which formerly were restricted just to expert investors. A mutual circular was released in January on the behalf of the Hong Kong-based key regulatory organizations to encourage the retail traders to participate in the market of crypto ETFs where the US and the UK-based regulated exchanges trade.
The respective circular categorized the products based on virtual assets into a couple of classes called non-complex and complex. Among these categories, just non-complex type would be permitted for retail traders. Some stringent measures have been imposed on the behalf of Hong Kong to restrict crypto trading, with having few exceptions, in the case of experts. The traders who have more than $1M worth in assets are considered to be the experts and are permitted to do the trading of virtual assets via regulated offerings.
Huobi Tech, previously called Pantronics, has diverted the focus thereof to the market of digital assets from electronic products. Even though the platform has a name analogous to the prominent crypto exchange called Huobi Global, the publically listed firm works autonomously within Hong Kong.
Huobi Technology operates with the status of being a fund manager who has a keen interest in the market of virtual assets. In advance of the venue’s present proposal to launch a retail crypto ETF, it has initiated a crypto OTC (over the counter) desk in the first week of March.