Hong Kong’s Crypto ETFs Are Facing Obstacles

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According to Gary Tiu, Executive Director and Head of Regulatory Affairs at Hong Kong crypto exchange OSL, there is a systemic barrier hindering the growth of cryptocurrency spot exchange-traded funds in Hong Kong.

This barrier is caused by a lack of incentive for the market to adopt ETFs in general.

Tiu explained during a panel discussion at the Foresight 2024 conference on Sunday that there is a significant number of intermediaries, such as banks and brokers, between the issuer and the end investor in the Hong Kong market.

These intermediaries earn high profits from distributing financial products, leading to a preference for unlisted products over ETFs which allow anyone to trade on the market.