Report: China’s largest mainland equity funds covertly enter the spot Bitcoin ETF market.
Mainland Chinese fund companies are capitalizing on their subsidiaries in Hong Kong to explore the potential of spot Bitcoin ETFs, demonstrating their strong interest in this new investment avenue.
According to a report from China’s state-owned newspaper Securities Times, several Chinese mainland-based equity funds have submitted applications to launch spot Bitcoin exchange-traded funds (ETFs) through their Hong Kong subsidiaries. Although the full list of companies interested in offering spot Bitcoin ETFs was not disclosed, it has been confirmed that Harvest Fund Management’s Hong Kong branch is among the applicants awaiting approval from the Securities & Futures Commission (SFC) of Hong Kong since January. The report also suggests that other Chinese public equity funds are currently assessing the feasibility and potential outlook of spot Bitcoin ETF products.
Furthermore, the Hong Kong division of China Asset Management, one of China’s largest asset management companies, has reportedly signed a cooperation agreement with Hong Kong’s licensed crypto exchange HashKey. The agreement aims to collectively promote and advance initiatives related to Web 3.0 in the asset management industry in Hong Kong. Although a specific timeline for the introduction of spot Bitcoin ETFs in Asia has not been announced, industry insiders speculate that relevant applications could be materialized as early as this quarter.
The momentum towards spot crypto ETFs gained significant traction when, in late 2023, the SFC and the Hong Kong Monetary Authority issued a joint circular acknowledging the growing interest in launching these types of ETFs. While the SFC has already granted permission for licensed crypto providers to offer crypto futures ETFs in the region, regulatory approval for spot ETFs is still pending.
In conclusion, mainland Chinese fund companies are actively leveraging their Hong Kong subsidiaries to explore the potential of spot Bitcoin ETFs. With various companies submitting applications and awaiting approval, it is clear that there is a strong interest in this new investment avenue. The cooperation between China Asset Management and HashKey further highlights the commitment to advancing initiatives related to Web 3.0 in the asset management industry. While the timeline for the introduction of spot Bitcoin ETFs in Asia remains uncertain, the industry is optimistic that relevant applications could be approved in the near future.
