According to a recent report, a number of well-known Chinese equity funds have submitted applications to issue spot bitcoin exchange-traded funds (ETFs) via their Hong Kong operations. This comes amid a month-long boom in cryptocurrencycurrency prices and Hong Kong’s increased efforts to position the city as a worldwide financial hub.
According to a Harvest Fund Management employee in China, the company’s HK subsidiary has applied to the Hong Kong Securities and Futures Commission (SFC) for a spot Bitcoin exchange-traded fund (ETF). The HK securities regulator is still deliberating over the application.
Exchange-traded funds (ETFs) for futures cryptocurrencygraphy were first established in Asia in December 2022 by Harvest Fund Management’s Hong Kong division. On October 31, 2022, the SFC approved the ETFs for virtual asset futures.
According to the article, several Chinese public equity funds are considering their options for spot Bitcoin ETF products and are assessing the potential and feasibility of associated ventures.
The goal of a cooperation between China Asset Management’s Hong Kong branch and HashKey Exchange is to “collectively promote and advance initiatives related to Web 3.0 in the asset management industry in Hong Kong.”
Applications for spot bitcoin exchange-traded funds were to be reviewed, according to announcements made in December by the SFC and the Hong Kong Monetary Authority.
Reuters reports that within the past five months, the assets under management of the largest Bitcoin futures exchange-traded fund in Hong Kong, CSOP Bitcoin Futures ETF, have increased five times to a total of little over $100 million.
Hong Kong Deputy Secretary of the Financial Services and the Treasury Bureau, Edmond Huang, recently highlighted ongoing efforts to regulate OTC trading of virtual assets, with the goal of bolstering Hong Kong’s standing as a global hub for cryptocurrencycurrency, in a speech at the opening ceremony of the “2024 Hong Kong Web3 Carnival.”
Huang states that the city also plans to allow intermediate institutions to offer exchange-traded fund (ETF) trading and futures, among other virtual asset services.
