Exchange-traded fund (ETF) issuers in Hong Kong remain undeterred by the crypto crackdown in the United States, which may result in regulators classifying Ethereum as a security. At a press conference on April 29, ahead of the launch of spot crypto ETFs in Hong Kong, Zhu Haokang, the head of digital asset management firm China Asset Management, and Wayne Huang, the head of custody firm OSL Digital Securities, addressed questions about the new institutional investment products.

In response to concerns about the world's first spot Ether ETF and the potential impact of the United States classifying it as a security, Huang stated, "Probably not, because whether the United States defines Ethereum as a security does not affect the independent decision-making of the Hong Kong Securities Regulatory Commission." He emphasized that the Hong Kong Securities Regulatory Commission has its own procedures for determining whether specific crypto assets are securities and whether retail investors can trade them.

Huang also explained why Hong Kong is leading the world in launching an Ethereum spot ETF, as opposed to the United States. He highlighted the complex regulatory landscape in the U.S., where multiple departments are involved in regulating cryptocurrency, leading to differing opinions and regulatory approaches. In contrast, Hong Kong has already defined Ethereum as not a security, alongside Bitcoin, allowing both assets to be offered to retail investors.

While the U.S. Securities and Exchange Commission (SEC) is investigating the Ethereum Foundation to determine its status as a security, Hong Kong ETF issuers are moving forward confidently. China Asset Management, Bosera Asset Management, and Harvest Global Investments have launched crypto ETFs through their Hong Kong subsidiaries on the Hong Kong Stock Exchange under the tickers CAM, BOS, and HGI.

OSL Digital Securities, selected as the first virtual asset trading and sub-custodian partner by China Asset Management (Hong Kong), is playing a pivotal role in this new wave of crypto ETF offerings. China Asset Management, a state-owned bank established in 1998 and headquartered in Beijing, is one of China's largest fund families.