Publicly-traded company Huobi Tech announced today that it has submitted a proposal to the Hong Kong Securities and Futures Commission (SFC) to launch a crypto Exchange-Traded Fund (ETF).
Huobi Crypto ETF Targets Retail Investors
The Huobi Crypto ETF, which will track the price of crypto assets, will give investors who have less than HK$8 million (US$1 million) in assets exposure to the crypto market.
Romeo Wang, the senior vice-president at Huobi Tech, commented, “(Having) all the trading and redemption done directly in Hong Kong … would give better protection to investors, as the fund will be regulated under Hong Kong law.”
He continued, “We will keep close and positive communications with regulators, including the SFC” to “obtain the proper licenses and approvals.”
Hong Kong Proposes Crypto Ban for Retail Investors
With rumors that the legislature will pass an amendment bill banning retailers from directly trading bitcoin and other crypto assets, the chances of the authorities allowing retail investors to legally trade virtual assets remain low.
The country’s Financial Services and Treasury Bureau passed a bill that would ensure that crypto trading is limited to only institutional investors, banning retail investors from accessing the crypto market.
Hong Kong authorities claim the bill was based on the recommendations of the Financial Action Task Force (FATF) to combat money laundering and terrorist financing.
However, Hong Kong traders did not welcome the news with open arms. As a result, Global Digital Finance, an industry body representing the cryptocurrency exchanges BitMEX, Huobi, OKCoin, and Coinbase, warned Hong Kong authorities that the bill will push retail investors to unregulated exchanges.
In November last year, Julia Leung Fung-yee, the Deputy Chief Executive of the country’s Security and Futures Commission (SFC), disclosed that the country is contemplating adjusting its crypto rules to allow retail investors to invest in crypto.
Source: https://coinfomania.com/huobi-crypto-etf-targets-retail-investors/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=huobi-crypto-etf-targets-retail-investors