Huobi Tech, a Hong Kong-based fund manager with a public stock market, is planning to create a cryptocurrency-tracking exchange-traded fund (ETF) for individual investors.
The crypto ETF proposal was apparently presented to the Securities and Futures Commission (SFC) by the Hong Kong Stock Exchange-listed company. According to the South China Morning Post, the new ETF product will target ordinary investors with withholdings under HK$8 million (US$1 million).
A Hong Kong-regulated crypto ETF, according to the firm’s vice president Romeo Wang, will provide superior security to investors. He also stated that they are actively in contact with the SFC and expect to maintain a constructive dialogue. In order to offer regulated crypto ETF products in the market.
Huobi is relying on the recent lifting of the restrictions on crypto ETFs for regular investors. Which were previously only available to professional investors. In January, Hong Kong’s top regulatory organisations issued a joint circular. Allowing retail traders to participate in the crypto ETF market on licenced exchanges in the US and the UK with some restrictions.
Only the non-complex form of virtual asset-based products would have permission for retail traders, according to the circular.
Virtual asset fund manager
With a few exceptions, Hong Kong has enacted strong regulations restricting professional crypto trading. Professional traders with assets of more than $1 million allowed to trade virtual assets through regulated offerings.
Huobi Tech, formerly Pantronics Holdings, has switched its concentration away from electronic items and into the digital asset sector. Despite sharing a name with the well-known cryptocurrency exchange Huobi Global, the Hong Kong-based publicly traded corporation operates independently.
Huobi Technology is a virtual asset fund manager. The company started crypto over the counter (OTC) desk in March’s first week. Prior to its current proposal for a retail crypto ETF.