Key Takeaways
- Major Chinese asset managers, including Harvest Fund and Southern Fund, seek to enter the Bitcoin ETF market via their Hong Kong subsidiaries.
- While the mainland has been cautious and has previously cracked down on Bitcoin trading and mining, Hong Kong has adopted a more open approach.
- Industry insiders anticipate that the spot Bitcoin ETFs will receive approval from regulatory authorities as early as Q2 of this year.
Two of China’s largest asset managers, Harvest Fund and Southern Fund, applied to launch a spot Bitcoin ETF in Hong Kong through their local subsidiaries.
This announcement comes as a surprise for the crypto industry as both entities are recognized as major asset managers in China, particularly given their country’s recent stance against Bitcoin.
Collective AUM Of $500 Billion
According to Bitcoin Magazine, Harvest Fund manages over $230 billion in assets, and Southern Fund oversees over $280 billion. Although these amounts are not as huge as those managed by Wall Street giants like BlackRock and Fidelity, it still shows that big investment firms are starting to get into Bitcoin. It also suggests that even countries with strict cryptocurrency regulations might be warming up to it.
Bitcoin ETF Applications In Hong Kong
A decision on the Hong Kong spot Bitcoin ETF applications, including those from Harvest Fund and Southern Fund, could come as early as Q2 2024. While the approval is not a guarantee, analysts are hopeful, particularly considering the success of similar ETFs approved by the US Securities and Exchange Commission (SEC) on January 10th.
Bitcoin Ban In China
It is important to note that Bitcoin remains prohibited in mainland China, with tight restrictions on cross-border capital movements. However, the crypto industry functions in a somewhat grey area within the nation. According to a Reuters report, individuals can still trade Bitcoin and other tokens on cryptocurrency exchanges such as Binance and OKX.
In addition to registered over-the-counter (OTC) channels facilitating crypto transactions, Chinese investors have also found workarounds to acquire digital currencies through overseas bank accounts.
