By
Josh O'Sullivan
April 30th, 2024
While the spot Bitcoin ETF market is taking shape in the United States, the specific timeline for the launch of the asset class in Asia remains unknown.
Chinese mainland-based equity funds are exploring opportunities in the spot Bitcoin exchange-traded fund (ETF) market through their Hong Kong subsidiaries.
According to a report from the Securities Times, the hedge funds, including Harvest Fund Management and Southern Fund, through their Hong Kong units, have submitted applications to the country’s financial regulator, the Securities & Futures Commission (SFC) of Hong Kong.
China Asset Management Enters Agreement with HashKey
The report also disclosed that “multiple” other Chinese funds are interested in joining the spot Bitcoin ETF bandwagon. However, only the Harvest Fund and Southern Fund subsidiary named Southern Dongying were mentioned in the report.
Harvest Fund, headquartered in Beijing with over $230 billion in assets under management as of 2020, submitted its application to the SFC in January this year.
While the two asset managers are awaiting the SFC decision, Southern Fund’s subsidiary, Southern Dongying, has already been cleared to offer Bitcoin Futures ETFs, becoming the first in Asia to offer such products to its customers.
In addition, China Asset Management, one of the country’s largest asset management companies, has signed a cooperation agreement with Hong Kong’s licensed crypto exchange HashKey to offer the new investment products to its customers. HashKey received regulatory approval from the SFC last year in August to legally enter the Hong Kong market under the country’s new licensing regime, which allows digital asset service providers (DASPs) to offer services to retail investors.
China Asset Management’s agreement with HashKey aims to promote initiatives related to Web3 in Hong Kong’s asset management industry.
Hong Kong Could Approve Spot Bitcoin ETFs in Q2
While the spot Bitcoin ETF market is taking shape in the United States following its approval in January, the specific timeline for the launch of the asset class in Asia remains unknown.
However, industry experts suggest that relevant applications could be approved as early as this quarter (Q2 2024). Harvest Fund plans to be the first to roll out the investment vehicle within the given timeframe if approved by the SFC. Harvest Fund’s spokesperson confirmed that the company is indeed planning to launch a spot Bitcoin ETFs in Hong Kong.
“We are also arranging the Bitcoin business, and are also launching related products in the Hong Kong market through the platform of the Hong Kong subsidiary, but they are not futures ETFs,” said the company’s spokesperson.
The momentum towards spot crypto ETFs gained traction after the SFC and the Hong Kong Monetary Authority issued a joint circular in late 2023, acknowledging the growing interest in launching such products. According to the circular, the authorities will consider the approval of spot Bitcoin ETF applications once they meet all the critical requirements of such a financial product.