Hong Kong mulls allowing spot crypto ETFs in pursuit of Asia hub

Hong Kong is assessing whether to allow exchange-traded funds that invest directly in crypto as officials step up efforts to create an Asia-Pacific digital-asset hub while tackling the fallout of the JPEX scandal.

The city is weighing retail-investor access to such spot ETFs providing regulatory concerns are met, Securities and Futures Commission Chief Executive Officer Julia Leung said. “We welcome proposals using innovative technology that boosts efficiency and customer experience,” Leung said in her first interview with international media since taking office on Jan. 1. “We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”