Chinese Fund Giant Files First Spot Bitcoin ETF In Hong Kong
The Hong Kong-based company moved significantly by applying to a Bitcoin spot Exchange Traded Fund (ETF) to the Hong Kong Securities and Futures Commission (SFC).
Top Chinese fund company, Harvest Fund Hong Kong, has joined the recent trend in the crypto space.
According to Chinese media firm Tencent News, Harvest Fund Hong Kong is the first financial institution to submit a Bitcoin ETF in Hong Kong. This shows positive interest in crypto-related activities from the region.
The introduction of Harvest Fund's application represents a significant turning point in the region's financial arena, occurring shortly after the milestone approval by the US Securities and Exchange Commission (SEC) of the initial set of US Bitcoin spot ETFs on January 11, 2024.
This decision by the SEC encompassed the transformation of Grayscale Bitcoin Trust's GBTC from a closed-end fund to a Bitcoin spot ETF, along with the green light for applications from prominent Western financial giants like BlackRock and Fidelity.
Hong Kong SFC Set To Approve the Application on February 10
Following numerous reports, the Hong Kong Securities and Futures Commission (SFC) plans to make the application their first Bitcoin spot Exchange Traded Funds.
This means the Bitcoin ETF will be listed on Hong Kong Stock Exchange, following the Chinese New Year celebration. Crypto investors in the region are expected to start trading it from February 10, 2024.
According to recent news, approval of the Hong Kong Bitcoin ETF by the SFC will take a similar route to that of the U.S. SEC. Unlike the U.S. Bitcoin ETF application, which involved various financial firms, Harvest Fund is the only applicant in the region.
However, there are speculations that other financial juggernauts in Hong Kong will join Harvest Fund in the pursuit of approving a Bitcoin ETF.
This anticipation arises due to the substantial investor bases and expansive customer acquisition networks held by these institutions.
As an illustration, BlackRock's IBIT presently holds the third position in size among more than 600 ETFs issued in the US in the last year, underscoring the increasing investor preference for spot ETFs compared to other types of ETFs.
Conclusion
As reported by Livio Weng, the Chief Operating Officer (COO) of HashKey Group, up to ten asset management firms in the region are getting ready to go for spot Bitcoin and crypto Exchange-Traded Funds (ETFs) in the region.
Hong Kong's recent interest in the crypto space will be key to bringing more financial companies into filing for a Bitcoin spot Exchange Traded Funds (ETF) approval.
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