As an analyst with experience in the financial industry, I believe that the exchange-traded fund issuers in Hong Kong are taking a calculated risk by not being overly concerned about the crypto crackdown in the United States and its potential impact on Ether (ETH) being classified as a security. While it is true that the Hong Kong Securities Regulatory Commission makes independent decisions regarding the classification of crypto assets, it is important to note that regulatory environments can shift and evolve over time.
In Hong Kong, exchange-traded fund providers remain unperturbed by the potential classification of Ether (ETH) as a security following regulatory crackdowns in the US.
At a press conference held on April 29, just prior to the debut of spot crypto ETFs in Hong Kong, I, as an investor in digital assets, had the opportunity to listen to Zhu Haokang, the head of China Asset Management’s digital asset management division, and Wayne Huang, the CEO of OSL Digital Securities, answer queries regarding the new institutional investment offerings.
As a researcher exploring the topic of cryptocurrency exchange-traded funds (ETFs), I came across an intriguing question concerning the world’s first spot Ethereum ETF and its potential implications if the United States classifies it as a security. In response to this query, Huang shared his insights:
“Probably not, because whether the United States defines Ethereum as a security does not affect the independent decision-making of the Hong Kong Securities Regulatory Commission.” [translation]
The Hong Kong Securities Regulatory Commission has established distinct processes for identifying if specific cryptocurrencies qualify as securities and are accessible to individual investors for trading.
“He added that it wouldn’t be influenced by conflicting views among American departments or their individual interpretations in the end.”
He additionally highlighted that Hong Kong would be leading the way globally in introducing a spot Ethereum ETF before the US.
“The regulation of cryptocurrency in the United States has multiple departments speaking out at the same time, or trying to regulate it.”
“Regarding Ethereum in Hong Kong, it has been clearly defined,” he explained, going on to add, “Contrary to some beliefs, Ethereum does not equate to a security.” He further mentioned that along with Bitcoin, Ethereum is among the two digital assets permissible for retail investors.
As a researcher following the developments in the cryptocurrency industry, I can share that the U.S. Securities and Exchange Commission (SEC) is conducting an investigation into the Ethereum Foundation. The purpose of this probe is to examine whether or not the SEC considers Ethereum to be a security under the U.S. securities laws.
Three more asset management companies, besides China Asset Management, have introduced crypto exchange-traded funds (ETFs) through their Hong Kong branches on the Hong Kong Stock Exchange as of April 30. These are Bosera Asset Management and Harvest Global Investments, with ticker symbols CAM and BOS for Bosera, and HGI for Harvest.
On April 15, China Asset Management (Hong Kong) selected OSL Digital Securities as their inaugural virtual asset trading and sub-custodian partner.
Established in 1998 and based in Beijing, China Asset Management is a prominent state-owned financial institution in China. This bank is among the country’s largest fund management organizations.
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2024-04-30 06:13