Huobi Tech, a public listed fund supervisor in Hong Kong, plans to launch a cryptocurrency monitoring exchange-traded fund (ETF) for retail traders.
The Hong Kong Inventory Trade-listed firm has reportedly submitted a proposal to the Securities and Futures Fee (SFC) for its crypto ETF. The brand new ETF product will likely be targeted on retail traders with belongings lower than HK$8 million ($1 million), reported the South China Morning Publish.
The vp of the agency, Romeo Wang, pressured {that a} Hong Kong-regulated crypto ETF would supply higher safety to traders and likewise famous that they’re actively engaged with the SFC and hopes to take care of constructive communication to supply regulated crypto ETF merchandise available in the market.
Huobi Tech didn’t reply to Cointelegraph’s requests for feedback on the time of publishing.
Huobi is banking on the latest leisure on crypto ETF merchandise for retail traders, which have been earlier restricted to skilled traders. In January, the chief regulatory our bodies in Hong Kong released a joint round providing restricted exceptions for retail merchants to participate within the crypto ETF market that trades on regulated exchanges in the US and the UK.
The round labeled digital asset-based merchandise into two classes; specifically, complicated and non-complex, the place solely the non-complex sort could be allowed for retail merchants.
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Hong Kong has imposed strict measures to restrict crypto buying and selling for professionals, with few exceptions. Merchants with belongings of over $1 million are thought-about skilled and allowed to commerce in digital belongings by regulated choices.
Formally generally known as Pantronics Holdings, Huobi Tech has shifted its focus from digital merchandise to the digital asset market. Though it shares a typical identify with the favored cryptocurrency change group Huobi World, the publicly listed firm in Hong Kong works as an unbiased entity.
Huobi Expertise works as a fund supervisor with an curiosity within the digital asset market. Previous to its present proposal for retail crypto ETF, the corporate has launched a crypto over-the-counter (OTC) desk in March’s first week.
