China’s largest fund applies for Hong Kong spot Bitcoin ETF

According to recent reports, some of China’s largest asset managers are using their Hong Kong subsidiaries to enter the Bitcoin ETF market.

JUST IN: 🇨🇳 The $284 billion China Southern Fund has reportedly applied for a launch location #Bitcoin ETF through Hong Kong.

You can’t stop an idea whose time has come 🙌 pic.twitter.com/rnHOuRoY7V

— Bitcoin Magazine (@BitcoinMagazine) April 8, 2024

Securities Times reported on Monday that financial giants such as Harvest Fund and Southern Fund have submitted applications through their Hong Kong offices and are awaiting regulatory approval. The move reflects growing institutional interest despite China’s previous hostility toward Bitcoin.

The Harvest Fund manages more than $230 billion in total assets, and the Southern Fund oversees more than $280 billion. The approval of a Bitcoin ETF product by these influential institutions could significantly validate Bitcoin in the eyes of Chinese regulators and investors alike.

This news is also evidence that China’s Bitcoin environment is evolving. Despite previous crackdowns on Bitcoin trading and mining, the country is now seeing a change. While the mainland remains cautious, Hong Kong is adopting a more open approach, attracting the attention of Chinese funds.

By utilizing a Hong Kong subsidiary, major funds can gain exposure to Bitcoin in a compliant manner. This position provides a legal loophole for Chinese companies to participate in the fast-growing Bitcoin asset class.

Industry insiders are buzzing with anticipation as they predict major milestones for Bitcoin. Hong Kong’s first Bitcoin ETF could launch as early as the second quarter of this year.

It is clear that financial leaders want to meet the surging demand from investors for access to Bitcoin. Bitcoin ETFs provide a regulated on-ramp for both institutional and retail players.