April 10 saw the Hong Kong Securities and Futures Commission (SFC) make revisions to its roster of companies specializing in virtual asset management funds.
Based on Tencent News reports, the Securities and Futures Commission (SFC) is set to unveil Hong Kong’s inaugural Bitcoin exchange-traded funds (ETFs) on April 15. The Hong Kong Stock Exchange then requires approximately two weeks to ready these ETFs for public release.
Harvest International and China Asset Management’s Listing
Two well-known Chinese investment firms, Harvest International Asset Management Company and China Asset Management (Hong Kong), have been included in the recently revised roster.
On January 26, Harvest International led the way by suggesting a Bitcoin ETF based on the spot market in Hong Kong. After approximately three months, Harvest International received approval for managing “currency circle” assets. This authorization allows Harvest International and China Asset Management to introduce related investment products, including a spot Bitcoin ETF, to the general public.
At first, the Securities and Futures Commission intended to give the green light to four Exchange-Traded Funds (ETFs), among which were proposals from Harvest International, China Asset Management, Boshi Fund, and Value Partners Financial.
The last two funds were missing from the revised roster. It was alleged that these funds did not have qualified and authorized individuals, known as Responsible Officers (ROs), to manage their assets in accordance with the “currency circle” regulations.
About a month ago, China Asset Management put together a swift-moving team to accelerate their application submission in response to the stringent requirements established by Hong Kong’s regulatory body, known as the “currency circle.” Within just two weeks, they successfully gained approval from the Securities and Futures Commission (SFC). Other applicants adopted similar strategies to meet these challenging regulations.
Limited Crypto Exchange Options
In Hong Kong, the authorization of Bitcoin ETFs trading at spots has recently followed the US Securities and Exchange Commission’s approval of similar products in January. The US ETFs have experienced significant growth since then, with the top three managing over 88% of the total assets under management.
Instead of buying a U.S. Bitcoin ETF with legal tender, investors in Hong Kong have an extra choice: they can sign up for the ETF on the Hong Kong Stock Exchange using regular currency or bitcoin spot via approved crypto exchanges.
Despite progress, issues remain, mainly due to the small number of authorized cryptocurrency platforms in Hong Kong. At present, just HashKey and OSL are in operation, leaving a restricted range for investors looking to buy Bitcoin at spot prices.
At the forefront of Bitcoin ETF applications in Hong Kong, Harvest International encountered challenges due to the exchanges’ lack of experience with the ETF submission process and related technology.
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2024-04-10 13:32