China’s Harvest Fund Management, a $210 billion AUM investment fund, has become the first company to apply for a Bitcoin spot ETF with Hong Kong’s Securities and Futures Commission (SFC). Coming from China’s 6th largest investment company, this signals a growing appetite for Bitcoin ETF among asset managers. According to Tencet News, the Hong Kong Securities Regulatory Commission is speeding up the clearance process for the ETF application.
Reports indicate that the regulatory body plans to launch the spot Bitcoin ETF on the Hong Kong Stock Exchange. The target date is reportedly February 10, coming just after the Chinese New Year celebrations. The decision by Hong Kong to speed up the approval process comes on the heels of a similar regulatory approval of 11 ETFs in the US two weeks ago.
Hong Kong’s moment in the sun amid China’s economic woes
Hong Kong has been strategic in its efforts to establish itself as a digital asset investment haven since last year in an effort to reclaim its position as a preferred global financial hub. Furthermore, the Chinese economy finds itself in unfamiliar pressures not seen for decades, with stock and property market crashes in recent months.
The situation in China seems to be worsening. The world woke up on Monday to news of liquidation orders issued to property development giant Evergrande, which has sunk into a $300 billion debt pit. The crisis in China could provide an impetus for Hong Kong to establish itself as a safer exit point for investors in China, leveraging the $50,000 allowance for foreign transfers.
There has been a marked increase in the level of excitement among investment fund managers around digital assets following the launch of spot ETFs. Among the many investment vehicles handled by Harvest Fund Management are mutual funds and pension funds. Similar to the US strategy, the Hong Kong Securities Regulatory Commission will likely look into approving multiple institutions for Bitcoin spot ETFs at the same time.