Multiple asset management firms based in China have expressed interest in offering spot Bitcoin exchange-traded funds (ETFs) through their Hong Kong subsidiaries. Harvest Fund and Southern Fund, two prominent firms managing assets exceeding $200 billion each, have reportedly been exploring the possibility of introducing such ETFs.
The move comes as a result of stringent restrictions on cryptocurrency trading and mining in China, which prevent asset managers from offering ETFs within the country. Harvest Fund’s Hong Kong arms had already submitted an application for a spot Bitcoin ETF in January. Southern Fund, which currently offers Bitcoin futures ETFs and ether futures ETFs in Hong Kong, may also be considering the launch of a spot Bitcoin ETF.
Crypto investors in Hong Kong have eagerly anticipated the introduction of spot Bitcoin ETFs to the local market. In the previous year, the Hong Kong Monetary Authority and the Securities and Futures Commission announced their acceptance of applications for cryptocurrency-based ETFs. The availability of these funds would provide Hong Kong investors with a means to gain exposure to bitcoin.
In 2022, Harvest Fund Management’s Hong Kong business arm successfully launched a futures crypto ETF, demonstrating the firm’s previous foray into cryptocurrency-related investment products.