Some of China's largest asset managers are using Hong Kong affiliates to enter the bitcoin ETF market, according to recent reports.
JUST IN: 🇨🇳 $284 billion South China Fund has reportedly applied to launch the site #Bitcoin ETF via Hong Kong.
You cannot stop an idea whose time has come pic.twitter.com/rnHOuRoY7V
– Bitcoin Magazine (@BitcoinMagazine) April 8, 2024
Financial giants such as Harvest Fund and Southern Fund have filed applications through their Hong Kong arms and are awaiting regulatory approval, the Securities Times reported on Monday. The move reflects growing institutional interest despite China's previous hostility toward Bitcoin.
The Harvest Fund manages more than $230 billion in total assets, while the South Fund oversees more than $280 billion. Approval of Bitcoin ETF products from these influential institutions could significantly validate Bitcoin in the eyes of both Chinese regulators and investors.
The news is also a testament to the evolving Bitcoin landscape in China. Despite its previous crackdown on Bitcoin trading and mining, the country is now undergoing a transformation. While the mainland remains cautious, Hong Kong has adopted a more open approach, attracting the attention of Chinese funds.
By leveraging affiliates in Hong Kong, major funds can gain exposure to Bitcoin in a compliant manner. The site provides a legal loophole for Chinese companies to participate in the booming Bitcoin asset class.
Industry insiders are watching in anticipation as they anticipate a significant milestone for Bitcoin. The first Bitcoin ETFs will likely be launched in Hong Kong as early as the second quarter of this year.
Financial leaders are clearly keen to meet the growing demand from investors for access to Bitcoin. Bitcoin ETFs provide a structured on-ramp for both institutional and retail players.
