Chinese Asset Managers Poised to Launch Bitcoin and Ethereum ETFs in Hong Kong
Chinese Asset Managers Poised to Launch Bitcoin and Ethereum ETFs in Hong Kong
Major Chinese asset managers are gearing up to introduce spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong, with a potential launch date as early as Monday, according to Bloomberg sources. Harvest Fund Management Co.’s international division and a joint venture between Bosera Asset Management (International) Co. and HashKey Capital are reportedly the two entities planning to roll out these ETFs by the end of the month, pending approval from the Securities and Futures Commission (SFC) and finalizing listing arrangements with Hong Kong Exchanges & Clearing Ltd.
The news comes after reports earlier this week that prominent Chinese asset managers have applied for spot Bitcoin ETFs through their Hong Kong subsidiaries. The potential approval of these Hong Kong-listed ETFs could attract up to $25 billion in demand from mainland China, as qualified Chinese investors may access the funds through the Southbound Stock Connect program, according to Matrixport.
The Southbound Stock Connect program allows for up to 500 billion RMB (HK$540 billion and $70 billion) per year in transactions, with a yearly limit of HK$540 billion for Chinese investment in Hong Kong-listed stocks. Matrixport suggests that the unused quota could be directed towards the Bitcoin ETF if approved.
Following the debut of US spot Bitcoin ETFs, global investors have turned their attention to Hong Kong as the next hub for crypto ETFs due to the country’s regulatory environment. In late December last year, the SFC and the Hong Kong Monetary Authority (HKMA) issued new rules addressing the possibility of investment funds, brokerages, and asset managers offering crypto ETFs, in preparation for upcoming crypto ETF products.
It remains to be seen how the launch of these Bitcoin and Ethereum ETFs in Hong Kong will impact the global crypto market and attract further investment from Chinese investors. Stay tuned for more updates on this developing story.
