Hong Kong Exchange Plans Digitalization Of ETP Mechanism By 2025

According to PANews, the Hong Kong Stock Exchange (HKEX) has disclosed plans to digitalize and automate the physical subscription and redemption mechanism for exchange-traded products (ETPs) through an online platform by 2025. This initiative is contingent upon the readiness of the system and obtaining regulatory approval. HKEX aims to integrate this platform into the primary market's subscription and redemption mechanism for ETPs. The platform will utilize Distributed Ledger Technology (DLT) and smart contracts to connect major ETP market participants. This integration is expected to enhance the overall efficiency of the ETP market and promote sustained growth in secondary market activities. Earlier this year, HKEX listed Asia's first inverse Bitcoin product. This inverse product, launched in July on the Hong Kong Stock Exchange, offers investors a new tool to capture Bitcoin price fluctuations. Additionally, with the listing of Asia's first six virtual asset spot ETFs in April and the previously listed three virtual asset futures ETFs, Hong Kong's virtual asset ETP offerings are becoming increasingly diverse.