At the listing ceremony of the first batch of Bitcoin and Ethereum spot ETFs, Ms. Cai Fengyi, Executive Director of the Investment Products Department of the Securities Regulatory Commission, said:
Today, I am very pleased to attend the listing ceremony of the first six Bitcoin and Ethereum spot ETFs managed by three fund companies.
The institutions are Bosera Funds (International) Co., Ltd., China Asset Management (Hong Kong) Co., Ltd., and Harvest Global Asset Management Co., Ltd.
Limited company.
The six virtual asset spot ETFs listed today are also the first batch of similar products in Asia, fully demonstrating the Hong Kong Securities Regulatory Commission’s efforts in promoting
While promoting the long-term sound development of the market, we will also achieve comprehensive and effective regulatory results in terms of investor protection and other regulatory aspects.
We understand that the virtual asset market has experienced a lot of turmoil in recent years, whether it is the collapse of stablecoins and the closure of various trading platforms,
Fraud and other events have caused many investors to suffer heavy losses. But at the same time, more and more investors (including professional investors and even
There is a demand for virtual assets (including spot, futures, other on- and off-exchange instruments, such as exchange products).
In addition, many traditional financial institutions and intermediaries have also begun to provide virtual asset investment related
Serve.
Although virtual assets and their markets have various risks, the Hong Kong Securities and Futures Commission has seen the opportunities that virtual assets and related technologies can bring.
Since 2018, the Bank has been the first to introduce a comprehensive framework to regulate the widespread virtual
One of the main financial regulators for virtual asset-related activities.
We approved the listing of Bitcoin and Ethereum futures ETFs in December 2022, and we also allowed Hong Kong companies to list their shares in June last year.
People buy and sell Bitcoin and Ethereum on virtual asset trading platforms licensed by the Hong Kong Securities and Futures Commission.
We also noticed that many investors want to invest in spot virtual
Therefore, considering the needs of investors, we believe that it is appropriate to provide regulated virtual asset spot ETF products.
It is in the public interest.
Different from similar spot ETFs listed on other overseas exchanges, these ETFs can be subscribed and redeemed in kind.
We have also developed a more comprehensive regulatory framework than other regions, which covers the entire virtual asset ecosystem in the operation of approved ETF products.
Every link in the system (including fund companies, custodian banks, asset trading platforms, participating securities firms, etc.) is required to be regulated by the Hong Kong Securities and Futures Commission.
Licensed or approved institutions must strictly comply with our regulations on asset custody, liquidity, valuation and other aspects of approved public investment products.
requirements in terms of value, information disclosure, investor education, etc.
While an effective regulatory regime can enable us to address the potential risks of operating a virtual asset portfolio, it does not exempt the virtual asset market from
I must emphasize that the CSRC’s approval of virtual asset ETFs is absolutely not equivalent to our support for
Related virtual assets may encourage the public to invest in related assets. Virtual assets themselves are highly speculative and their prices are very volatile, just like cryptocurrencies.
There is a joke in the asset circle, "One day in the cryptocurrency world is like one year in the real world." Bitcoin and Ethereum once plunged 40% in one day and fell 10% in one year.
It fell by more than 60%. Therefore, I would like to remind everyone that virtual assets are not suitable for all investors. Only by fully understanding them,
Only those who can bear the risks should consider the relevant products.
Remind the general public of things they need to pay attention to when participating in the virtual asset market.
The listing of virtual asset spot ETFs is an important milestone in the development of the Hong Kong ETF market.
After being included in the Stock Connect in July 2011, ETF trading has become more active, with its overall trading volume in the Hong Kong stock market increasing significantly to 10%.
4. Recently, the China Securities Regulatory Commission announced five measures to further optimize the Shanghai-Hong Kong Stock Connect and help Hong Kong enhance its status as an international financial center.
measures, including: relaxing the scope of eligible ETF products under the Shanghai-Hong Kong Stock Connect; including real estate investment trusts (REITs) in the Shanghai Stock Connect;
Shenzhen-Hong Kong Stock Connect; support the inclusion of RMB stock trading counters in the Hong Kong Stock Connect; optimize the mutual recognition arrangement of funds; support leading enterprises in the mainland to
In the current challenging market environment, these measures will immediately inject new impetus into Hong Kong's financial development.
We will continue to work hard to actively study and promote the industry to make full use of and make relevant Hong Kong-friendly measures effective.
We sincerely thank the Central Government and the SAR Government for their unwavering support for Hong Kong’s financial market.
