BTC
by BSC News
April 8, 2024
Leading financial entities like Harvest Fund and Southern Fund have submitted applications, pending regulatory approval, which could validate Bitcoin in the eyes of both Chinese regulators and investors.
Several prominent Chinese mainland equity funds are reportedly seeking approval to launch spot Bitcoin exchange-traded funds (ETFs) through their Hong Kong subsidiaries in response to a sustained rally in cryptocurrency prices and Hong Kong's ambition to establish itself as a global fintech hub.
Despite China's previous adversarial stance towards Bitcoin, this move indicates a noteworthy shift in institutional interest.
The Securities Times reports that Harvest Fund and Southern Fund have applied for spot Bitcoin ETFs via their Hong Kong branches. These applications, pending regulatory approval, signal a significant endorsement of Bitcoin within both Chinese financial circles and regulatory bodies.
Worth noting, Harvest Fund manages assets exceeding $230 billion, while Southern Fund oversees a portfolio exceeding $280 billion. Known for its pioneering initiatives in China's public offering market, Southern Dongying could be one of the market leaders for Bitcoin ETFs in the region.
Beyond Harvest Fund and Southern Fund, other Chinese public equity funds are also considering entry into the spot Bitcoin ETF market.
For major Chinese funds, leveraging their Hong Kong subsidiaries offers a strategic advantage in gaining exposure to Bitcoin in a compliant manner. Through this approach, Chinese companies can participate in the rapidly growing cryptocurrency asset class without being constrained by mainland regulatory hurdles.
Despite China's historically cautious attitude toward Bitcoin, Hong Kong's more permissive regulatory environment has become a beacon for institutional investment in cryptocurrencies.
Hong Kong's Monetary Authority and Securities and Futures Commission (SFC) are open to considering spot cryptocurrency ETF applications, following global trends for regulatory acceptance of digital assets.
The collaboration between Chinese equity funds and established cryptocurrency exchanges, such as the partnership between Hong Kong Asset Management and HashKey Exchange, further solidifies Hong Kong's reputation as a global hub for cryptocurrency investments and innovation.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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