Mainland Chinese fund companies are actively exploring the possibility of launching spot Bitcoin exchange-traded funds (ETFs) through their subsidiaries in Hong Kong, signaling a growing interest in this new investment avenue.
According to a report from China’s state-owned newspaper Securities Times, multiple Chinese mainland-based equity funds have submitted applications to introduce spot Bitcoin ETFs via their Hong Kong subsidiaries. While the full list of interested companies has not been disclosed, it is confirmed that Harvest Fund Management’s Hong Kong branch is among those awaiting approval from the Securities & Futures Commission (SFC) of Hong Kong since January. Additionally, other Chinese public equity funds are reportedly assessing the feasibility and potential outlook of spot Bitcoin ETF products.
China Asset Management’s Hong Kong division, one of the largest asset management firms in China, has reportedly entered into a cooperation agreement with HashKey, a licensed crypto exchange in Hong Kong. The collaboration aims to collectively promote initiatives related to Web 3.0 in the asset management industry in Hong Kong. Although a definitive timeline for spot Bitcoin ETFs in Asia has yet to be announced, industry insiders speculate that relevant applications could materialize as early as this quarter.
The momentum towards spot crypto ETFs gained momentum following a joint circular issued by the SFC and the Hong Kong Monetary Authority in late 2023. The circular acknowledged the growing interest in launching spot crypto ETFs and indicated regulatory willingness to explore this avenue. While the SFC has granted permission for licensed crypto providers to offer crypto futures ETFs in the region, regulatory approval for spot ETFs remains pending, awaiting further developments.
