Bitcoin price has seen a notable fluctuation, briefly crossing $72,500 on Monday before falling below the $70,000 threshold on Tuesday. This move can be attributed to risk-off sentiment among investors, largely in anticipation of today’s latest US Consumer Price Index (CPI) numbers. After hitting a low of $68,200 on Tuesday, Bitcoin staged a slight recovery and stabilized above $69,400 at the time of reporting.
At the same time, the Hong Kong Securities and Futures Commission (SFC) updated its register of virtual asset management funds beginning April 10. Notably, the SFC is set to announce the inaugural list of four Bitcoin spot exchange traded funds (ETFs) on April 15. , as reported by Tencent News. This announcement marks a significant milestone and sets the stage for the launch of the ETFs on the Hong Kong Stock Exchange in late April. Despite the magnitude of this news, the immediate market reaction has been muted.
Hong Kong will launch Spot Bitcoin ETFs by the end of April
Tencent News reports this report, Harvest International Asset Management and Huaxia Funds (Hong Kong) Limited have been officially approved to manage virtual assets, marking their entry into the cryptocurrency sector in Hong Kong. This development is important as it introduces mainland China’s leading public fund companies into Hong Kong’s virtual asset industry. Currently, there are 18 funds in Hong Kong authorized to manage cryptocurrency assets, with Harvest International and Huaxia Fund among the first public funds to venture into this space.
Harvest International emerged as the pioneer in submitting a proposal for a spot Bitcoin ETF in Hong Kong from January 26. Following this initial filing, both companies have now secured the necessary qualifications to issue cryptocurrency-related fund products, including Bitcoin spot ETFs. This move will allow retail investors to access these products through the Hong Kong Stock Exchange.
The urgency to update the list of virtual wealth management funds stems from the SFC’s plan to unveil the first batch of Bitcoin spot ETFs by April 15. The first batch was expected to include Huaxia Fund, Bosera Fund and Value Partners Financial in addition to Harvest International. However, Bosera and Value Partners were notably absent from the updated list due to the lack of an independent responsible officer (RO) qualified in cryptocurrency asset management. These funds are reportedly working with Hashkey Capital and VSFG, both qualified crypto asset management organizations.
In preparation for the launch of the ETF, some applicants, including the Huaxia Fund, quickly formed special teams and submitted their applications in early March. The rapid approval of Huaxia by the SFC, achieved in just two weeks, underlines the rapid pace of development in this field. The application process for a Bitcoin spot ETF in Hong Kong involves extensive collaboration with more than twenty institutions, including custodian banks and market makers.
Following the SFC’s approval, the Hong Kong Stock Exchange is expected to spend approximately two weeks preparing for the launch of the ETF. Notably, this move opens up the crypto sector to Chinese retail investors, three months after the US SEC approved the first batch of Bitcoin spot ETFs on January 11.
At the time of writing, BTC was trading at $69,484.
Featured image created with DALL·E, chart from TradingView.com
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.
