The price of Bitcoin experienced significant changes, reaching an peak of $72,500 on Monday only to drop below $70,000 the next day. This volatility is primarily due to investor anxiety leading up to the release of the most recent US Consumer Price Index (CPI) data. After hitting a low of $68,200 on Tuesday, Bitcoin rebounded slightly and was holding steady above $69,400 at the time of writing.
At the same time, the Hong Kong Securities and Futures Commission (SFC) has recently updated its list of virtual asset management funds on April 10. It’s worth mentioning that the SFC plans to unveil the first four Bitcoin spot Exchange Traded Funds (ETFs) on April 15, according to Tencent News. This announcement signifies an important development, paving the way for these ETFs to debut on the Hong Kong Stock Exchange by the end of April. Surprisingly, the initial market response has been subdued despite this significant news.
Hong Kong To Launch Spot Bitcoin ETFs By End Of April
Based on an article from Tencent News, Harvest International Asset Management and Huaxia Funds (Hong Kong) have been given the green light to oversee virtual assets, marking their debut in Hong Kong’s cryptocurrency scene. This is noteworthy because it brings major Chinese public fund companies into this industry for the first time. At present, there are 18 funds in Hong Kong authorized to handle crypto assets, making Harvest International and Huaxia Fund among the initial publicly-traded funds to explore this emerging field.
Starting from January 26, Harvest International took the lead in submitting a proposal for a Bitcoin spot ETF in Hong Kong. After this first step, both companies have acquired the necessary licenses to offer cryptocurrency-related fund items, which include Bitcoin spot ETFs. This development allows individual investors to purchase these products via the Hong Kong Stock Exchange.
The need to revise the virtual fund list for managing Bitcoin spot ETFs is driven by the SFC’s intention to introduce the first group of these funds by April 15. Originally, Huaxia Fund, Bosera Fund, and Value Partners Financial were expected to be part of this initial batch, along with Harvest International. However, Bosera and Value Partners failed to make the updated list because they don’t have an independently qualified cryptocurrency asset management expert, known as a Responsible Officer (RO). Reports suggest that these funds are currently working with Hashkey Capital and VSFG, organizations duly certified for managing crypto assets, in order to meet this requirement.
To get ready for the debut of the Bitcoin spot ETF in Hong Kong, some applicants, such as Huaxia Fund, have been working diligently to put together specialized teams and submitting their applications before the end of February. Huaxia’s quick approval by the Securities and Futures Commission (SFC) within two weeks highlights the brisk progress being made in this field. The application procedure for a Bitcoin spot ETF in Hong Kong necessitates close cooperation with more than 20 institutions, which include custodian banks and market makers.
After receiving the green light from the Securities and Futures Commission (SFC), the Hong Kong Stock Exchange is anticipated to take around two weeks to prepare for the launch of a crypto-ETF. Significantly, this development provides Chinese retail investors with access to the crypto market, marking three months since the US Securities and Exchange Commission (SEC) gave its approval for the initial Bitcoin spot ETFs on January 11.
At press time, BTC traded at $69,484.
Read More
Sorry. No data so far.
2024-04-10 10:52