Bitcoin ETF craze sweeps China as top fund applies for approval in Hong Kong

According to the media "Securities Times", China's financial giants Harvest Fund and China Southern Fund recently submitted applications to launch a new Bitcoin spot ETF.

Harvest Fund and Southern Fund lead the advancement of China’s Bitcoin ETF

Although China has historically been skeptical of Bitcoin and cryptocurrencies, leading fund houses are now actively seeking regulatory approval to launch Bitcoin ETFs.

Harvest Fund through its Hong Kong subsidiary and Southern Fund through its Hong Kong branch have proactively applied for and deployed Bitcoin ETFs.

Additionally, ChinaAMC’s Hong Kong subsidiary recently formed a partnership with a Bitcoin ETF custodian, highlighting the expanding scope of industry collaborations.

Hong Kong’s fund industry has reportedly become a testing ground for new Bitcoin investment products. With the support of its Hong Kong subsidiary, the leading fund house can expand its product lines and investment scope. This move allows them to tap into the growing demand for alternative investment options in the region.

Strong interest in the cryptocurrency market has been sparked after CSOP, the Hong Kong subsidiary of China Southern Fund, reportedly successfully launched Asia's first cryptocurrency ETF, adding an element of excitement over the possible approval of a new Bitcoin ETF application.

Despite market volatility, CSOP’s FA South Bitcoin Futures ETF has achieved impressive returns and trading volume, which has attracted the attention of other public funds and investors.

In addition, at the "2024 Hong Kong Web3 Carnival", regulatory authorities expressed their commitment to promoting industry participation and implementing comprehensive public education commitments. .

This approach aims to encourage the development of digital asset markets while striking a balance between innovation and regulation, marking a significant shift in the industry’s regulatory stance.

The report also highlighted the ongoing collaboration between ChinaAMC’s Hong Kong branch and HashKey exchange, demonstrating its efforts to establish a new regulatory framework for virtual assets.

Approval expected in Q2

According to the Securities Times, industry insiders predict that the Bitcoin ETF application may be implemented as early as the second quarter of this year.

The report also states that Hong Kong is considering promoting the creation and redemption of spot Bitcoin ETFs, which could significantly increase AUM and trading volumes in the region.

Ultimately, with Harvest Fund managing more than $230 billion in assets and Southern Fund managing more than $280 billion, their entry into the Bitcoin ETF space also reflects institutions’ growing interest in digital assets.

As the regulatory environment evolves and industry support strengthens, Hong Kong may position itself as a key hub for new Bitcoin investment products, paving the way for wider adoption of the digital asset in the region.

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