Share this article
Bloomberg News, citing anonymous sources familiar with the matter, reported that major Chinese asset managers are planning to launch Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong as early as Monday. However, the schedule is still tentative, sources said.
Harvest Fund Management Co.’s international division and a joint venture of Bosera Asset Management (International) Co. and HashKey Capital are potential ETF issuers, according to Bloomberg sources.
As previously mentioned, the two companies plan to launch the ETF by the end of this month after awaiting approval from the Securities and Futures Commission (SFC) and finalizing a listing agreement with the Hong Kong Exchange.
This report follows news earlier this week that prominent Chinese asset managers had applied for a Bitcoin spot ETF through their Hong Kong subsidiaries. According to Bloomberg, on April 9, the SFC approved permission to provide fund management services related to virtual assets to Harvest and China Asset Management.
Hong Kong Bitcoin ETF prepares to raise $25 billion
The possible approval of a Hong Kong-listed spot Bitcoin ETF could generate up to $25 billion in demand in mainland China as qualified Chinese investors would be able to access funds through the Southbound Stock Connect program, Matrixport said in a report Friday. It was revealed.
“The potential approval of a Hong Kong-listed Bitcoin spot ETF could attract billions of dollars in capital as mainland investors take advantage of the Southbound Stock Connect program, which facilitates trading of up to 500 billion yuan (HK$540 billion and $70 billion) annually. can. “Based on (potential) available capacity, the Hong Kong Bitcoin ETF could have up to HK$200 billion, or US$25 billion,” said Matrixport.
The Southbound Stock Connect program sets an annual limit of HK$540 billion for Chinese investment in Hong Kong-listed stocks. However, data from 360MarketIQ shows that allocations have not been fully utilized over the past three years, leaving approximately HK$100 billion to HK$200 billion of unused capacity annually.
Matrixport suggested that, if approved, this unused allocation could be directed to a Bitcoin ETF.
Following the launch of the US spot Bitcoin ETF, global investors are looking to Hong Kong as the next hub for cryptocurrency ETFs due to the country’s regulatory environment.
In late December last year, the SFC and the Hong Kong Monetary Authority (HKMA) announced new regulations covering the potential for investment funds, brokerages and asset managers to offer cryptocurrency ETFs. The move was seen as preparation for the upcoming cryptocurrency ETF product.
Share this article