**Hong Kong Embraces Cryptocurrency with ETFs and Exchange-Traded Funds** Hong Kong has emerged as a leader in the development of cryptocurrency-related financial products. The Hong Kong Exchanges and Clearing Limited (HKEX) has become the first exchange in Asia to offer exposure to crypto assets through exchange-traded funds (ETFs). The asset under management (AUM) for Hong Kong-listed ETFs related to cryptocurrencies (ETPs) has reached an impressive 118 billion YTD 2022, indicating a significant 50% increase year-on-year. In December 2023, the Hong Kong Securities and Futures Commission (SFC) issued guidelines for SFC-authorized funds with exposure to virtual assets. This move cleared the path for the launch of spot bitcoin ETFs. Hong Kong's financial industry is actively preparing for the introduction of spot crypto ETFs. Several firms are reportedly in advanced stages of development. The launch of these ETFs would provide retail investors with a regulated and convenient way to gain exposure to cryptocurrencies. The recent trading debut of two cryptocurrency futures ETFs on the HKEX raised a combined 736 million, demonstrating the strong demand for crypto-related investment products in Hong Kong. As the regulatory framework for cryptocurrencies continues to evolve, Hong Kong is positioning itself as a major hub for the development and trading of these digital assets. The introduction of crypto-related ETFs and exchange-traded funds is expected to further boost the growth of the crypto industry in Hong Kong.
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