Recent developments indicate that mainland Chinese fund giants are discreetly exploring opportunities in the spot Bitcoin ETF market through their Hong Kong subsidiaries, signalling a significant shift in investment strategies.
According to insights from China’s state-owned Securities Times, several mainland-based equity funds have initiated the process of launching spot Bitcoin exchange-traded funds (ETFs) via their Hong Kong branches.
While the specific companies involved remain undisclosed, Harvest Fund Management’s Hong Kong arm has been confirmed as among those awaiting approval from the Securities & Futures Commission (SFC) of Hong Kong since January.
Additionally, other prominent Chinese public equity funds are reportedly evaluating the feasibility and potential outlook of spot Bitcoin ETF products.
The emergence of this trend underscores the growing interest of Chinese fund companies in diversifying their portfolios through exposure to digital assets, particularly Bitcoin.
Notably, China Asset Management’s Hong Kong division has forged a partnership with HashKey, a licensed crypto exchange in Hong Kong, to jointly promote initiatives related to Web 3.0 within the region’s asset management industry.
Although a concrete timeline for the introduction of spot Bitcoin ETFs in Asia is yet to be announced, industry insiders speculate that formal applications could materialize as early as the current quarter.
This zeal towards spot crypto ETFs gained momentum following a joint circular issued by the SFC and the Hong Kong Monetary Authority in late 2023, acknowledging the escalating interest in launching such products.
While the SFC has granted approval for licensed crypto providers to offer crypto futures ETFs, the regulatory green light for spot ETFs remains pending, awaiting further deliberation and assessment.