YEREVAN (CoinChapter.com) — Several top equity funds from mainland China, through their Hong Kong subsidiaries, have recently applied to launch a spot Bitcoin exchange-traded fund (ETF). This move comes amid a month-long surge in cryptocurrency prices and Hong Kong’s ambitious drive to become an international fintech hub. Industry insiders predict that we could see these ETFs listed as early as the second quarter.
Is Hong Kong Set to Welcome Harvest Fund’s Bitcoin ETF?
Harvest Fund Management, a prominent Chinese asset management firm, has taken steps through its Hong Kong subsidiary to apply for a spot Bitcoin ETF, according to reports from the Securities Times on Monday. Currently, this application is under review by the Hong Kong Securities and Futures Commission (SFC), waiting for the green light. An employee from Harvest confirmed this exciting development, highlighting the anticipation surrounding the regulator’s decision.
The report also highlights that other Chinese public equity funds are eyeing the potential of spot Bitcoin ETF products. They are currently exploring the market outlook and assessing the feasibility of such ventures, indicating a growing interest in cryptocurrency investment options among China’s financial institutions.
China Asset Management and HashKey: Pioneering Web 3.0 in Finance
The Hong Kong branch of China Asset Management has struck a cooperation deal with HashKey Exchange. Together, they’re setting their sights on pushing forward Web 3 initiatives within Hong Kong’s asset management industry. HashKey Exchange stands out as one of the licensed cryptocurrency exchanges operating in Hong Kong, making this partnership a notable move in the finance and tech spheres.
In December, both the Hong Kong Monetary Authority and the Securities and Futures Commission (SFC) expressed openness to considering applications for spot crypto ETFs. This development followed the United States Securities and Exchange Commission’s approval of the first spot Bitcoin ETF in January this year, marking a significant step forward in integrating cryptocurrencies into mainstream financial markets.
Bitcoin Soars as Hong Kong Ramps Up Crypto Market Ambitions
On Monday, Bitcoin’s trading price hovered around $69,000, nearly doubling from its value in December last year. It even reached an all-time high of over $73,000 in March. In Hong Kong, the largest Bitcoin futures ETF, the CSOP Bitcoin Futures ETF, experienced a significant growth spurt, with its assets under management ballooning to just over $100 million in the past five months—a fivefold increase, as reported by Reuters.
At the “2024 Hong Kong Web3 Festival” opening ceremony on Saturday, Edmond Huang, the Deputy Secretary of the Financial Services and the Treasury Bureau, emphasized the region’s efforts to update laws. These updates aim to bring over-the-counter (OTC) trading of virtual assets within the scope of formal regulatory oversight.
Furthermore, the city is setting the stage to enable intermediary institutions to provide a broad spectrum of virtual asset services. This expansion includes trading in futures and exchange-traded funds (ETFs), as outlined by Edmond Huang. This initiative underscores Hong Kong’s ambition to become a more inclusive and diversified hub for digital asset trading and investments.
