Recent reports indicate that two of China’s biggest money management companies are submitting applications for spot bitcoin exchange-traded funds (ETFs). The Securities and Futures Commission (SFC) of Hong Kong is the body that Harvest Global Investments and Southern Fund are requesting permission from to launch spot bitcoin exchange-traded funds (ETFs).
China’s Investment Powerhouses Dive into Spot Bitcoin ETF Scene
Several Chinese organizations are expressing a strong interest in developing spot bitcoin exchange-traded funds (ETFs), according to people familiar with the situation who spoke to China’s Securities Times. Beijing’s Harvest Fund (HGIUK) which was established in 1999, has taken the initiative and applied to the Securities and Futures Commission (SFC) in Hong Kong thus stressing its commitment to serving a global clientele, especially those who are investing in China.
HGIUK is seeing an increase in interest in cross-border investments as Chinese investors look for more attractive prospects offshore during prolonged downturns in the home stock market. Southern Fund (CSOP), a significant participant, is currently applying to become a spot bitcoin exchange-traded fund (ETF). In addition, it has been revealed that China Asset Management, or China AMC, is working with a Hong Kong-based Bitcoin custodian.
Industry sources predict that by the second quarter of 2024, the cryptocurrency-focused ETFs will be approved. The Southern Dongying Bitcoin Futures ETF, which Southern Fund introduced, is the first bitcoin futures-based exchange-traded fund (ETF) in Asia. A source close to Harvest Fund’s strategic objectives told a local journalist that the company was planning for more Bitcoin business by launching more products in the Hong Kong market through the platform of the Hong Kong subsidiary.
Furthermore, at the April 6, 2024, Hong Kong Web3 Carnival, the city’s regulatory authorities announced their intention to promote increased industry participation. The Securities Times further revealed that Hashkey Group, an all-inclusive supplier of financial services related to digital assets in Asia, expects to make official announcements about the Hong Kong Bitcoin spot ETF in the first half of this year.
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