bitcoin Photo:IC

A number of leading Chinese mainland-based equity funds have reportedly applied for issuing spot Bitcoin exchange-traded fund (ETF) via their Hong Kong subsidiaries, amid a month-long rally in crypto currency prices and Hong Kong’s increased efforts to build the city into an international fintech hub. Any listing could be as early as in the second quarter, industry insiders predicted. 

Chinese asset management company Harvest Fund Management has reportedly submitted a spot Bitcoin ETF application to the Hong Kong Securities and Futures Commission (SFC) via its HK subsidiary, and the application is awaiting the approval of the HK securities regulator, an employee of the company was quoted as saying in a report by the Securities Times on Monday.

Harvest Fund Management’s Hong Kong division launched futures crypto ETFs in December 2022, also the first group of futures crypto ETFs to debut in Asia.SFC greenlighted the authorization of virtual asset futures ETFs for public offering on October 31, 2022.

According to the report, other Chinese public equity funds also have plans to apply for spot Bitcoin ETF products, and are studying on the outlook and feasibility of related business. 

The Hong Kong division of China Asset Managementannounced that it has reached a cooperation agreement with HashKey Exchange, “to collectively promote and advance initiatives related to Web 3.0 in the asset management industry in Hong Kong.”HashKey Exchange is one of the licensed crypto currency exchanges operating in Hong Kong.

In December, the Hong Kong Monetary Authority as well as the SFC said they would considerapplication for spot crypto ETFs. The US Securities and Exchange Commission approved the first spot Bitcoin EFT in January this year. 

Bitcoinwas trading at around $69,000 on Monday, almost doubling from its reading in December last year. It once hit a historical high of over $73,000 in March. Hong Kong's largest Bitcoin futures ETF, CSOP Bitcoin Futures ETF, saw its assets under management swell five-fold in the past five months to just over $100 million, the Reuters reported. 

Hong Kong has sustained ongoing  effort to strengthen its position as a leading global crypto hub. In a recent speech at the opening ceremony of the “2024 Hong Kong Web3 Carnival” on Saturday,Hong Kong Deputy Secretary of the Financial Services and the Treasury Bureau, Edmond Huang,highlighted authorities’ efforts in modifying relevant laws to bring over-the-counter (OTC) trading of virtual assets under formal regulatory oversight, industry news website blockchain.news reported. 

The city also plans to allow intermediary institutions to offer a range of virtual asset services, including futures and exchange-traded funds (ETF) trading, according to Huang. 

Global Times