Hong Kong outlines new rules for crypto futures ETF issuers

Quick Take

  • Only exchange-traded funds backed by bitcoin and ether futures traded on CME will be allowed.
  • ETF managers need to have at least a three-year track record.

Hong Kong's regulator has detailed the basic requirements that exchange-traded fund managers need to meet in order to list crypto products in the city.

The list forms part of a wider effort by city officials to re-establish Hong Kong as a center for virtual assets. The finance minister and other senior officials on Monday laid out plans to attract crypto-related companies including clearer trading rules.

Hong Kong's regional government also re-emphasized its participation in China's broader experiment with central bank digital currencies. 

Among those plans were crypto futures ETFs with underlying assets in instruments linked to bitcoin and ether futures traded on the Chicago Mercantile Exchange (CME), Securities and Futures Commission Deputy CEO Julia Leung announced at Hong Kong Fintech Week today.

A circular published after the forum closed for the day spelt out more details on what the SFC expected from any ETF issuer that sought regulatory approval to list a futures crypto product in Hong Kong. 

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