Major Chinese asset management companies Harvest Funds and Southern Funds have submitted their applications for a bitcoin ETF, taking the first step towards introducing spot bitcoin Exchange-Traded Funds (ETF) into the Chinese financial market.
Since the approval of spot bitcoin ETFs in the United States, the market has been on a steady rise and is gaining more popularity. Numerous financial firms have already invested, and many more are eager to join the trend, reflecting the growing confidence in Bitcoin’s investment potential.
Chinese Firms to Apply for Bitcoin Spot ETFs
According to recent reports, many Chinese financial companies are entering the bitcoin ETF market using their Hong Kong subsidiary companies.
The Hong Kong branches of Harvest Funds, China Southern Funds, and some unrevealed financial firms in China have applied to the Hong Kong Securities and Futures Commission (SEC) for bitcoin ETF approval.
Industry insiders predict that the applications could be approved before the first half of the year.
Hong Kong’s Rapid Cryptocurrency Adoption
Contrary to skepticism elsewhere, Hong Kong embraces a progressive stance towards bitcoin trading. The potential approval of a spot bitcoin ETF will stand as a testament to the rapid growth of bitcoin technology in China, even in the face of the ban on bitcoin trading and mining.
The Hong Kong subsidiary of the China Southern Funds was the first Chinese firm to launch a bitcoin futures ETF. The Hong Kong branch of Harvest Fund also launched its futures ETF in October 2022. The competition to determine which company should first deploy the bitcoin spot ETF has continued. Many Chinese asset managers are now paying more attention to the bitcoin ETF market.
In a recent speech at the opening carnival of the Hong Kong 2024 Web 3.0 carnival, Edmong Huang, the Hong Kong Deputy Secretary of the Financial Services and the Treasury Bureau, mentioned that the authorities are actively modifying some essential laws to accommodate trading of digital assets under some specific regulations.
In addition, the Chinese Asset Management Hong Kong branch has revealed that it has partnered with HashKey Exchange, one of the first digital currency exchanges in Hong Kong. The alliance aims to secure a license for bitcoin and other digital assets, which will aid in promoting the adoption of Web 3.0 in the Asian financial world and asset management system.
