Several prominent equity funds based in China have reportedly applied for issuing spot bitcoin exchange-traded funds (ETFs) through their Hong Kong subsidiaries. This development coincides with the cryptocurrency price’s month-long surge and Hong Kong’s heightened efforts to establish the city as a global fintech hub.
An employee of Chinese asset management company Harvest Fund Management stated that the application for a spot Bitcoin ETF has been submitted to the Hong Kong Securities and Futures Commission (SFC) through its HK subsidiary. The application is currently pending approval by the HK securities regulator.
In December 2022, Harvest Fund Management’s Hong Kong division introduced futures crypto exchange-traded funds (ETFs), which were the first of their kind to be introduced in Asia. SFC approved the public offering of virtual asset futures ETFs on October 31, 2022.
The report states that other Chinese public equity funds are planning to apply for spot Bitcoin ETF products, and are examining the prospects and viability of related business.
A partnership agreement between HashKey Exchange and China Asset Management’s Hong Kong division aims to “collectively promote and advance initiatives related to Web 3.0 in the asset management industry in Hong Kong.”
In December, the SFC and the Hong Kong Monetary Authority announced that they would review applications for spot bitcoin exchange-traded funds.
The price of Bitcoin (BTC) is currently $72,000, and there are signs that exchange-traded fund (ETF) flows will continue to be strong in the run-up to this month’s scheduled halving of the cryptocurrency, nearly doubling from its December value of the previous year.
In March, it once reached an all-time high of more than $72,500. According to Reuters, CSOP Bitcoin Futures ETF, the biggest Bitcoin futures exchange-traded fund in Hong Kong, has seen a five-fold increase in assets under management over the last five months, reaching slightly over $100 million.
In a recent speech at the “2024 Hong Kong Web3 Carnival” opening ceremony, Hong Kong Deputy Secretary of the Financial Services and the Treasury Bureau, Edmond Huang, highlighted ongoing efforts to regulate OTC trading of virtual assets, aiming to strengthen Hong Kong’s position as a global crypto hub.
According to Huang, the city also intends to permit intermediary institutions to provide a variety of virtual asset services, such as futures and exchange-traded fund (ETF) trading.
Also Read: Hong Kong Firms Eye First Spot Bitcoin ETFs in Asia
