The Hong Kong Securities and Futures Commission (SFC) has released rules for spot bitcoin exchange-traded fund (ETF) issuers, allowing the use of both cash and in-kind creation models. This is in contrast to the U.S. Securities and Exchange Commission (SEC), which insists on the exclusive use of the cash creation model for spot bitcoin ETFs. The SFC’s circular provides requirements for authorizing investment funds with exposure to virtual assets of more than 10% of their net asset value for public offerings in Hong Kong. The move aims to meet the growing demand for virtual asset products while ensuring investor protection safeguards. (Source: