Reports said that Huobi Tech, a public listed fund manager in Hong Kong, plans to launch a cryptocurrency tracking exchange-traded fund (ETF) for retail investors.
It has been reported that the Hong Kong Stock Exchange-listed company has reportedly submitted a proposal to the Securities and Futures Commission (SFC) for its crypto ETF. The new ETF product will be focused on retail investors with assets less than HK$8 million ($1 million).
However, the vice president of the firm, Romeo Wang, stressed that a Hong Kong-regulated crypto ETF would offer better security to investors and also noted that they are actively engaged with the SFC and hopes to maintain positive communication to offer regulated crypto ETF products in the market.
The report said that Huobi is banking on the recent relaxation on crypto ETF products for retail investors, which were earlier limited to professional investors. In January, the chief regulatory bodies in Hong Kong released a joint circular offering limited exceptions for retail traders to take part in the crypto ETF market that trades on regulated exchanges in the United States and the United Kingdom.
Likewise, the circular classified virtual asset-based products into two categories; namely, complex and non-complex, where only the non-complex type would be allowed for retail traders. Hong Kong has imposed strict measures to limit crypto trading for professionals, with few exceptions. Traders with assets of over $1 million are considered professional and allowed to trade in virtual assets through regulated offerings. Formally known as Pantronics Holdings, Huobi Tech has shifted its focus from electronic products to the digital asset market.
Although it shares a common name with the popular cryptocurrency exchange group Huobi Global, the publicly listed company in Hong Kong works as an independent entity.
Thus, Huobi Technology works as a fund manager with an interest in the virtual asset market. Prior to its current proposal for retail crypto ETF, the company has launched a crypto over the counter (OTC) desk in March’s first week.
Source: Cointelegraph
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