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Hong Kong's Q3 Virtual Asset Spot ETF Total Market Cap Grew by 33% Year-on-Year, Tokenization Market Also Experienced Rapid Growth

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Hong Kong’s Securities and Futures Commission (SFC) released its Q3 2025 report on December 17, showing continued expansion in the city’s virtual asset investment product market. As of end-November, the total market value of SFC-approved virtual asset spot ETFs rose 33% year-over-year to HK$5.47 billion, with the number of products growing to 11—reflecting increasing demand for compliant virtual asset investments. Meanwhile, tokenized financial products are advancing rapidly. Since their launch earlier this year, SFC-approved tokenized retail money market funds saw a 557% year-over-year jump in assets under management (AUM) to HK$5.48 billion (as of end-November), with 8 funds now available. This trend signals rising retail acceptance of tokenized products. Regulators have also issued risk warnings. In August, the SFC and Hong Kong Monetary Authority (HKMA) jointly reminded investors of market volatility tied to the stablecoin sector, noting that regulators are balancing virtual asset innovation with stronger risk management and investor protection.
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The DTCC is pushing for on-chain US Treasury bonds, with Wall Street's clearing system initiating the tokenization of government bonds.

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