Huobi Tech Launches Crypto-Tracking ETF in Hong Kong for Retail Traders

Huobi Tech Launches Crypto-Tracking ETF in Hong Kong for Retail Traders


2022-04-01 05:41:08

Although Huobi Tech shares the same name as the popular crypto exchange Huobi Global, it has no relationship with the crypto company and operates independently.

Huobi Tech, a publicly listed fund manager in Hong Kong, plans to launch a cryptocurrency-trading 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 focus on retail investors with assets under HK$8 million (US$1 million), the South China Morning Post reported.

The company’s vice president Romeo Wang said emphasizing that a Hong Kong-regulated crypto ETF will provide better security for investors and also noted that they are actively engaging with the SFC and hope will maintain active communication to provide regulated crypto ETF products in the market.

Huobi Tech did not respond to Cointelegraph’s request for comment at the time of publication.

Huobi is banking on the recent easing of crypto ETF products for retail investors, which were previously limited to professional investors. In January, major regulators in Hong Kong released a joint circular providing limited exceptions to retail traders participating in the exchange-traded crypto ETF market. administered in the United States and the United Kingdom

The circular has classified virtual asset-based products into two categories as complex and uncomplicated, of which only the uncomplicated category is allowed for retail traders.

Hong Kong has adopted strict measures to restrict cryptocurrency trading to professionals, with a few exceptions. Traders with assets over $1 million are considered professionals and are allowed to trade virtual assets through regulated services.

Formally known as Pantronics Holdings, Huobi Tech has shifted its focus from electronic products to the digital asset market. Despite sharing the same name as well-known cryptocurrency exchange group Huobi Global, the Hong Kong-based publicly listed company operates as an independent entity.

Huobi Technology acts as a fund manager interested in the virtual asset market. In light of the current proposal for a retail crypto ETF, the company launched its over-the-counter (OTC) crypto trading desk in the first week of March.

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