Huobi Tech, a public listed fund manager in Hong Kong, plans to launch a cryptocurrency tracking exchange-traded fund (ETF) for retail investors.
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 (US$1 million), reported South China Morning Post.
The vice president of the firm Romeo Wang said 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.
Huobi Tech didn’t respond to Cointelegraph’s requests for comments at the time of publishing.
Huobi is banking on the recent relaxation on crypto ETF products for retail investors, which were earlier limited to only 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.
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.
Related: Activists archive Hong Kong pro-democracy newspaper on blockchain
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.
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.
There is good reason to be afraid. Previous down markets have seen declines in excess…
United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are two robust logistics companies. Both…
Canadian crypto mining firm Bitfarms sold roughly $62 million worth of Bitcoin (BTC) in June,…
Invezz does not provide financial advice. Our aim is to simplify information about investing, enabling…
Noma, a Japanese film studio, has announced that it is producing three feature films that…
Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a…