China’s Top Funds Apply to Launch Bitcoin ETFs In Latest Industry Move
Harvest Fund and Southern Fund, two leading financial giants in China, have recently submitted applications to introduce a new spot Bitcoin ETF, as per a report by the local media outlet Securities Times.
Harvest Fund And Southern Fund Lead the Way
While China has previously shown reluctance towards Bitcoin and cryptocurrencies, prominent funds are now actively pursuing regulatory approval to launch Bitcoin ETFs.
- Harvest Fund, along with its subsidiary in Hong Kong, and Southern Fund, through its Hong Kong arm, have taken the initiative to apply and deploy Bitcoin ETFs.
- In addition, China Asset Management’s Hong Kong subsidiary has recently formed a partnership with a Bitcoin ETF custodian, indicating the increasing collaborations in the industry.
Positive Developments Seen In Hong Kong
The fund industry in Hong Kong is emerging as a key testing ground for new Bitcoin investment products, with leading funds leveraging their Hong Kong subsidiaries to expand their offerings and cater to the rising demand for alternative investments.
- The successful launch of Asia’s first cryptocurrency ETFs by CSOP, China Southern Fund’s Hong Kong arm, has stirred significant interest in the crypto market.
- Despite market fluctuations, CSOP’s FA Southern Bitcoin Futures ETF has delivered impressive returns and generated substantial trading volume, attracting the attention of other funds and investors.
Regulatory Support and Industry Participation
Regulatory authorities in Hong Kong have expressed their commitment to promoting industry participation and enhancing public education efforts at the “2024 Hong Kong Web3 Carnival,” signaling a shift towards fostering digital asset markets with a balance of innovation and oversight.
- Efforts between China Asset Management’s Hong Kong branch and the HashKey Exchange are underway to establish a new regulatory framework for virtual assets, showcasing industry collaboration.
Anticipated Approvals in Q2
As per the Securities Times, industry insiders believe that the approval of Bitcoin ETF applications could occur as early as the second quarter of this year.
- Hong Kong is contemplating facilitating the creation and redemption of spot Bitcoin ETFs, which could significantly boost asset management scale and trading volume in the region.
- With Harvest Fund managing over $230 billion and Southern Fund overseeing more than $280 billion in assets, their foray into the Bitcoin ETF space underlines the mounting institutional interest in digital assets.
Bitcoin Price Update
As of the latest data, the price of BTC is at $71,900, marking a 3.8% increase in the past 24 hours. Additionally, the leading cryptocurrency has displayed a positive trend over the last week, with a 4% upward momentum, breaking the earlier consolidation phase within the $65,000 – $68,000 range.
Hot Take: Embracing Bitcoin ETFs in China
China’s financial giants Harvest Fund and Southern Fund are spearheading the push for Bitcoin ETFs in the country, signaling a significant shift in the industry’s dynamics. With regulatory approvals expected in the near future and growing institutional interest, the landscape for digital assets, particularly in Hong Kong, is set for substantial evolution and adoption.
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