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With a spot Bitcoin ETF expected to see strong inflows within a month of its launch in the US, financial players in other markets are also exploring similar opportunities. Last week, on January 26, Harvest Hong Kong, one of China’s largest fund companies, applied for approval of a spot Bitcoin ETF with the Securities and Futures Commission.
Harvest Fund begins moving toward milestone with Bitcoin ETF application
In a significant development, Harvest Fund Hong Kong Company has taken the initiative to submit an application for a Bitcoin Spot Exchange Traded Fund (ETF) to the Hong Kong Securities and Futures Commission. Tencent News’ “First Line” exclusively obtained this information, making it the first instance of such an application in the region.
Sources at Tencent News’ First Line revealed that the Hong Kong Securities Regulatory Commission is actively working to expedite the approval process for the first Hong Kong Bitcoin Spot ETF. The envisaged schedule aims to list the first Hong Kong Spot Bitcoin ETF on the Hong Kong Stock Exchange after the Chinese New Year.
The move comes just two weeks after the U.S. Securities and Exchange Commission approved the first batch of U.S. spot Bitcoin ETFs on January 11. The accelerated progress in Hong Kong follows the regulatory green light given to similar ETFs in the US. This shows the Hong Kong Securities Regulatory Commission’s proactive approach to adopting digital currencies.
Hong Kong prepares to follow in US footsteps
A recent data analysis revealed that among the 27 Bitcoin spot ETFs in the US, Grayscale Bitcoin Trust (GBTC) holds a significant market share of $20.2 billion. Other notable players in the US market include BlackRock’s IBIT ($1.8 billion), ProShare’s BITO ($1.78 billion), and Fidelity Funds’ FBTC ($1.6 billion).
Tencent News’ First Line has gathered insights that suggest the Hong Kong Securities Regulatory Commission may adopt a similar approach to the US and approve multiple financial institutions at the same time. But Harvest Fund is not the only one in the race for spot Bitcoin ETFs. Other financial companies, such as Venture Smart Financial Holdings Ltd., are eyeing similar product launches.
Analysts in the Hong Kong fund sector opine that similar performance results could be achieved by mirroring the US spot Bitcoin ETF situation. Larger financial institutions like BlackRock and Fidelity are likely to grow faster due to their broader investor bases and broader customer acquisition channels.
Hong Kong family office investor managers have expressed strong interest in subscribing to local spot ETFs, despite recognizing potential differences in size compared to the US market. In particular, the Hong Kong Spot ETF may introduce the option of direct Bitcoin subscriptions in addition to fiat subscriptions.
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