In a groundbreaking improvement for Hong Kong’s crypto sector, Harvest Fund Hong Kong, a outstanding participant amongst Chinese language fund firms, has taken an enormous step by submitting for a Bitcoin spot Trade Traded Fund (ETF) with the Hong Kong Securities and Future Fee (SFC). The transfer, completely reported by Chinese language media Tencent Information, is the primary of its variety in Hong Kong and indicators a major shift within the area’s strategy to digital asset buying and selling and funding.
Chinese language Spot Bitcoin ETF by February 10?
Harvest Fund’s submitting marks a pivotal second in Hong Kong’s monetary panorama and follows on the heels of the US Securities and Trade Fee’s (SEC) landmark approval of the primary batch of US Bitcoin spot ETFs on January 11, 2024. This US choice included the conversion of the Grayscale Bitcoin Belief’s GBTC from a closed-end fund to a Bitcoin spot ETF, in addition to the approval of functions from Western monetary giants equivalent to BlackRock and Constancy.
Within the wake of those developments, the Hong Kong SFC is reportedly contemplating accelerating the approval course of for the area’s first Bitcoin spot ETF, with plans to listing it on the Hong Kong Inventory Trade shortly after the Chinese language New 12 months as early as February . 10. The Tencent Information report means that the SFC may observe an identical technique to the US SEC by approving a number of spot ETF functions on the identical time, though Harvest Fund stays the only applicant thus far.
Trade insiders speculate that even with the adoption of a number of spot ETFs, the dominance of huge establishments within the US market, equivalent to BlackRock and Constancy Funds, may very well be mirrored in Hong Kong. This expectation stems from the numerous investor base and in depth buyer acquisition networks that these establishments possess. For instance, BlackRock’s IBIT presently ranks third in dimension among the many greater than 600 ETFs issued within the US final 12 months, underscoring rising investor curiosity in spot ETFs over different ETF sorts.
There are additionally rumors of a doable operational distinction between the US and Hong Kong spot ETFs. In response to Tencent Information sources, along with money creation, Hong Kong spot ETFs may additionally provide the choice of “in-kind” Bitcoin refunds, a function not presently obtainable on US spot ETFs. Nonetheless, the SFC has not but formally commented on this side.
Any extra fund firms prepared for launch?
As beforehand reported by Bitcoinist, round ten Chinese language asset managers are gearing as much as launch spot Bitcoin and crypto ETFs in Hong Kong, a transfer indicative of the rising adoption and integration of digital belongings into the area’s monetary ecosystem. Livio Weng, COO of HashKey Group, revealed that seven to eight of those firms are “at a complicated stage” of launching these merchandise.
This initiative is in step with the evolving regulatory stance of the SFC and the Hong Kong Financial Authority (HKMA). In December 2023, they issued a round expressing their openness to functions for spot ETFs for digital belongings, marking a departure from their earlier “skilled traders solely” coverage established in 2018. This shift displays a broader pattern towards embracing and regulating digital belongings, positioning Hong Kong as a possible hub for Bitcoin and crypto funding and innovation.
On the time of writing, BTC was buying and selling at $42,267.
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