Hong Kong’s exchange-traded fund (ETF) issuers have expressed indifference over potential rulings from the United States that could classify Ether as a security. This comes in the wake of discussions leading to the launch of spot crypto ETFs in Hong Kong. During a recent press conference, Zhu Haokang, the head of digital asset management firm China Asset Management, and Wayne Huang, the head of OSL Digital Securities, provided insights on the new institutional investment products.
One key point addressed was the potential impact on the world’s inaugural spot Ether ETF should the United States declare it a security. Huang explained that the U.S. definition of Ethereum would not influence the independent decision-making of the Hong Kong Securities Regulatory Commission. He argued that the commission has its methods for determining which crypto assets are securities and whether retail investors can trade in them.
Highlighting the contrasting approaches between the U.S. and Hong Kong, Huang emphasized why Hong Kong was leading the launch of the world’s first spot Ethereum ETF. He pointed out that Hong Kong has a definitive stand on Ethereum and it is not considered a security. The asset, along with Bitcoin, he confirmed, could be provided to retail investors.
Meanwhile, the U.S. Securities and Exchange Commission is investigating the Ethereum Foundation to ascertain whether it categorizes the asset as a security. Other companies included in the new wave of crypto ETFs include Bosera Asset Management and Harvest Global Investments. These companies launched their crypto ETFs on the Hong Kong Stock Exchange on April 30. Additionally, OSL Digital Securities was selected as the principal virtual asset trading and sub-custodian partner by China Asset Management (Hong Kong) earlier this month.