Hong Kong Crypto Spot ETFs Face Hurdle Due to Lack of Broker Incentive
CryptoNewsTerminal Staff11 Aug, 2024
Hong Kong Crypto Spot ETFs Face Hurdle Due to Lack of Broker Incentive
Hong Kong Crypto Spot ETFs Face Structural Problem of Lack of Broker Incentive Hong Kong's crypto spot exchange-traded funds (ETFs) face a significant obstacle due to a lack of incentives for brokers, according to Gary Tiu, head of regulatory affairs at the Hong Kong-based crypto exchange OSL. The issue stems from the fact that most brokers in Hong Kong earn their revenue by distributing financial products, including non-exchange-traded shares. However, since crypto spot ETFs can be traded on the open market by anyone, brokers have little motivation to actively promote them. Tiu further notes that Hong Kong's regulators still maintain a cautious stance towards crypto spot ETFs, which adds to the challenges faced by these investment vehicles. Despite these obstacles, Hong Kong remains a key player in the global crypto industry. As the regulatory landscape continues to evolve, it remains to be seen whether crypto spot ETFs will gain wider acceptance and support in the city.
