Hong Kong’s Finance Secretary, Christopher Hui, emphasized the flexibility provided by the in-kind subscription and redemption feature of the city’s six spot crypto exchange-traded funds (ETFs) as part of Hong Kong’s initiative to position itself as a regional cryptocurrency hub.
This innovation allows investors to have more flexibility when subscribing to and redeeming units of these ETFs. Hui, during his recent visits to Europe, promoted Hong Kong’s Web3 policies and its unique financial advantages. He highlighted the comprehensive regulations implemented by the government for crypto and tokenization, demonstrating Hong Kong’s readiness to embrace the changing digital asset landscape.
These developments align with global trends towards efficient, low-cost payment solutions and sustainable economic transformation through green finance. However, the performance of Hong Kong’s spot crypto ETFs seems to be lagging behind their U.S. counterparts, based on data from The Block.
Hui also mentioned that the government issued the world’s first digitally native multi-currency government green bonds earlier this year, totaling $770 million. During his visits to the Netherlands, Spain, and Portugal, Hui emphasized Hong Kong’s strategic advantages under the “one country, two systems” framework, encouraging European businesses to use Hong Kong as a gateway to the Asian market.
The Hong Kong Financial Secretary also highlighted the success of Hong Kong’s startup ecosystem, positioning the city as a leading financial and technological innovation hub. In discussions with European regulators and financial industry leaders, Hui outlined Hong Kong’s regulatory approach to virtual assets, aiming to establish a comprehensive regulatory framework for the virtual asset industry.
Hui invited relevant officials and regulatory leaders to attend Hong Kong’s flagship event, the Hong Kong FinTech Week, in October, to facilitate international collaboration and exchange in the fintech industry. The recent Bitcoin Asia 2024 conference in Hong Kong attracted significant interest, particularly from mainland Chinese investors, showcasing the growing importance of Asia’s cryptocurrency investment landscape. This event also highlighted the new spot Bitcoin ETFs launched by the Hong Kong Exchange (HKEX) on April 30, marking Hong Kong’s strategic entry into the crypto market.
