China’s Investment Giants Set Sight on Spot Bitcoin ETFs in Hong Kong

Two of China’s top money management companies, Harvest Global Investments and Southern money, are reportedly making progress toward establishing spot bitcoin exchange-traded funds (ETFs), according to recent reports from regional sources. These initiatives represent a noteworthy advancement in the constantly changing field of bitcoin investing options.

Sources familiar with the matter have disclosed to China’s Securities Times that several Chinese entities are showing a keen interest in venturing into the realm of spot bitcoin ETFs. Harvest Fund, based in Beijing and founded in 1999, has emerged as a frontrunner in this endeavor by filing an application with Hong Kong’s Securities and Futures Commission (SFC). With a focus on serving an international clientele, particularly those with investments in China, Harvest Fund (HGIUK) aims to tap into the growing demand for cross-border investment opportunities.

Navigating Market Trends and Regulatory Environment

In the midst of ongoing fluctuations in the domestic stock market, Harvest Global Investments is witnessing a surge in demand for cross-border investments, signaling a shift towards more lucrative prospects abroad. Meanwhile, Southern Fund (CSOP) is also in the process of seeking approval for a spot bitcoin ETF, indicating a concerted effort among Chinese investment giants to diversify their portfolios and capitalize on the burgeoning cryptocurrency market.

Industry insiders anticipate that approval for cryptocurrency-focused ETFs will materialize by the second quarter of 2024. Southern Fund has already made waves in this space by introducing Asia’s first bitcoin futures-based ETF, known as the “Southern Dongying Bitcoin Futures ETF.” Meanwhile, Harvest Fund is exploring avenues to expand its presence in the Hong Kong market, with plans to launch related products through its local subsidiary.

As demonstrated by talks at the April 6, 2024, Hong Kong Web3 Carnival, regulatory agencies in Hong Kong have recently announced their dedication to encouraging increased industry involvement. As evidence of the increasing momentum in the cryptocurrency investing space, Hashkey Group, a well-known supplier of financial services related to digital assets in Asia, expects to make official announcements in the first half of the year on the licensing of Hong Kong Bitcoin spot ETFs.