According to the Securities Times, two major Chinese financial firms, Harvest Fund and Southern Fund, have submitted proposals to start a Bitcoin exchange-traded fund (ETF) that can be bought and sold on the spot market.
Harvest Fund And Southern Fund Spearhead Bitcoin ETF Push In China
Although China has historically been wary of Bitcoin and cryptocurrencies, major investment funds are currently working to obtain regulatory clearance in order to introduce Bitcoin ETFs.
The Harvest Fund and its Hong Kong branch, as well as Southern Fund and its Hong Kong division, have taken the lead in filing applications and implementing Bitcoin Exchange-Traded Funds (ETFs) in Hong Kong.
Additionally, the Hong Kong branch of China Asset Management has teamed up with a Bitcoin ETF custodian lately, reflecting the growing number of partnerships in this sector.
According to the report, the fund industry based in Hong Kong is serving as a trial ground for innovative Bitcoin investment offerings. With the help of their Hong Kong subsidiaries, major funds are able to broaden their product offerings and investment reach. This decision enables them to cater to the increasing interest in non-traditional investment choices within the Asia region.
The anticipated approval of new Bitcoin ETFs in the United States is causing a buzz, while the recent successful debut of Asia’s first cryptocurrency ETFs by China Southern Fund’s Hong Kong branch, CSOP, has sparked considerable attention and enthusiasm in the crypto market.
In spite of the unstable market conditions, CSOP’s FA Southern Bitcoin Futures ETF has allegedly yielded significant gains and high trading activity. This has piqued the interest of other publicly traded funds and individual investors.
Additionally, during the “2024 Hong Kong Web3 Carnival,” regulatory bodies pledged to encourage industry involvement and rolled out extensive public awareness programs.
This method promotes the growth of digital asset markets, fostering innovation whilst maintaining regulatory control, marking a significant change from past regulatory attitudes towards the industry.
Furthermore, the report brings attention to the partnership between China Asset Management’s Hong Kong office and HashKey Exchange, indicating their commitment to creating a fresh regulatory structure for digital assets.
Approvals Expected In Q2
According to a report in The Securities Times, experts in the industry believe that Bitcoin Exchange-Traded Funds (ETFs) might become available as soon as the second quarter of this year.
An additional point from the report is that Hong Kong might make it easier for spot Bitcoin ETFs to be established and redeemed. This potential development could lead to a substantial expansion in the size of asset management and trading activity within the region.
In the end, as Harvest Fund oversees more than $230 billion in assets and Southern Fund manages over $280 billion, their decision to enter the Bitcoin ETF market signifies the increasing institutional appetite for digital currencies.
With the regulatory environment shifting and growing industry backing, Hong Kong has the potential to emerge as a major player in offering new Bitcoin investment opportunities. This could lead to a broader acceptance of digital assets throughout the region.
Currently, Bitcoin is priced at $71,900, marking a 3.8% gain within the last day. Over the past week, this leading cryptocurrency has displayed an uptrend, advancing by approximately 4%.
The price trend has shifted, moving beyond the $65,000 to $68,000 range that had been stable for the last week.
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2024-04-09 09:11