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Bloomberg reported on Friday, citing unnamed sources familiar with the matter, that a major Chinese asset manager is looking to launch a Bitcoin and Ethereum physical exchange-traded fund (ETF) in Hong Kong as early as Monday. Ta. However, the timeline remains tentative, officials noted.
Two potential ETF issuers are Harvest Fund Management's international arm and a joint venture between Vocera Asset Management (International) and Hashkey Capital, Bloomberg sources said.
As previously mentioned, the companies plan to roll out the ETF by the end of this month, pending approval from the Securities and Futures Commission (SFC) and finalization of a listing agreement with the Hong Kong Exchange.
The report follows news earlier this week that a prominent Chinese asset management firm has applied for a spot Bitcoin ETF through its Hong Kong subsidiary. According to Bloomberg, on April 9, the SFC granted permission to Harvest and China Asset Management to provide fund management services related to crypto assets.
Hong Kong Bitcoin ETF poised to raise $25 billion
Matrixport said in a report on Friday that a Hong Kong-listed spot Bitcoin ETF could be approved as eligible Chinese investors could be allowed access to the fund through the Southbound Stock Connect program. , said it could spark up to $25 billion in demand from mainland China.
“Hong Kong-listed Bitcoin Spot ETF likely to be approved, Southbound Stock Connect Program to facilitate trading of up to RMB 500 billion (HKD 540 billion and USD 70 billion) annually for mainland investors “There is potential for billions of dollars to be raised to capitalize on this,” Matrixport said. “Based on the (potential) available capacity, the available capacity of these Hong Kong Bitcoin ETFs could be up to HK$200 billion, or US$25 billion.”
The Southbound Stock Connect program sets an annual cap of HK$540 billion for China's investment in Hong Kong-listed stocks. However, the allocation has not been fully utilized for the past three years, leaving about HK$100 billion to HK$200 billion of unused capacity annually, according to 360MarketIQ data.
Matrixport indicated that if approved, this unused allocation could be directed to a Bitcoin ETF.
After the debut of spot Bitcoin ETFs in the US, global investors see Hong Kong as the next hub for crypto ETFs due to the city's regulatory environment.
In late December last year, the SFC and the Hong Kong Monetary Authority (HKMA) issued new regulations addressing the possibility of investment funds, securities companies and asset managers offering crypto ETFs. This move is seen as preparation for future virtual currency ETF products.
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