Hong Kong-registered crypto firm Huobi is making a move to launch an exchange-traded fund for virtual currencies. An ETF exposes investors to crypto investments without purchasing any of the assets directly. The ETF will monitor major digital currencies and help retail investors get on board with crypto investments.
The blockchain firm, whose parent company is Huobi Global, has already written an application to the country’s Securities and Futures Commission. It aims to make crypto ETFs more accessible to investors whose assets are below a million U.S. dollars.
This decision is part of Huobi’s bigger plans to create a pathway for non-high profile investors to get into the world of cryptocurrency in the country. Presently, no exchange is offering the service to retail investors. Huobi Hong Kong is hoping to lure as many investors as possible with this plan.
Huobi Sets Sights on Flexible Crypto Laws in Hong Kong
While Huobi’s latest move is a few steps away from being accomplished, the fund manager wants regulators to soften the professional-only law for virtual currency investment. It’s also hoping to be approved for the ETF to keep in line with its intentions to remain in the state.
This application follows the proposed bill, seeking to obstruct retailers from trading BTC and other cryptos. If implemented or signed, crypto adoption would be massively affected.
The SFC has cleared the air on its stance on trading ETFs, adding that its objective is to safeguard retail investors from volatility and loss of funds, which are typical occurrences in the crypto market. However, the SFC pointed out that retailers could still trade some ETFs at the time of this writing.
Huobi is one of the few fund managers backed by the SFC to offer crypto-based products to pro investors. However, it’s the first to go into crypto ETFs for retailers.
Unlike Asia, where crypto ETFs are restricted, many American and European countries already offer various ETFs to retailers on a global scale. It creates an alternative for retail investors to invest in the sector. However, a more flexible law in Hong Kong could alter the paradigm.
Hong Kong Losing its Label as a “Crypto Haven”
Since the crackdown and adoption of rigid laws, Hong Kong has lost its appeal as a refuge for crypto firms. Following the crackdown, several crypto startups departed for a friendlier location, leaving the country with a gloomy outlook.
Plus, the government has been dragging its feet on adopting laws that will benefit the crypto world. This contributed to the departure of several crypto players, such as FTX and Crypto.com, to the Bahamas and Singapore.