Here’s When Hong Kong Will Announce its Bitcoin ETFs: Report

On April 10, the Hong Kong Securities and Futures Commission (SFC) updated its virtual asset management fund company list.

According to Tencent News, the SFC will reveal Hong Kong’s first spot Bitcoin ETFs on April 15, and the Hong Kong Stock Exchange will need two weeks to prepare for their release.

Harvest International and China Asset Management’s Listing

Harvest International Asset Management Company and China Asset Management (Hong Kong) Co., Ltd., two prominent mainland public fund companies, have been added to the updated list.

On January 26, Harvest International was the first to propose a spot Bitcoin ETF in Hong Kong. After nearly three months, Harvest International obtained approval for “currency circle” asset management, enabling it and China Asset Management to offer related fund products like spot Bitcoin ETFs to the public.

The SFC had initially planned to approve four such ETFs, including those from Harvest International, China Asset Management, Boshi Fund, and Value Partners Financial.

However, the latter two funds were absent from the updated list, with reports suggesting they lack independent licensed responsible persons (ROs) meeting the asset management requirements for the “currency circle.”

China Asset Management formed a temporary team over a month ago to expedite its application process, securing approval from the SFC within two weeks. Other applicants made similar efforts to meet the strict criteria the Hong Kong regulatory authorities set under the “currency circle.”

Limited Crypto Exchange Options

The approval of spot Bitcoin ETFs in Hong Kong comes shortly after the United States Securities and Exchange Commission gave the green light to similar products in January. The U.S. ETFs have gotten substantial assets under management, with the top three accounting for over 88% of the total.

In contrast to the U.S. spot Bitcoin ETF, which can be purchased using legal currency, the Hong Kong products offer an additional subscription option via BTC spot. This means investors can subscribe to the ETF on the Hong Kong Stock Exchange using legal currency or opt to use Bitcoin spot through compliant cryptocurrency exchanges.

However, challenges persist, primarily concerning the limited number of licensed crypto exchanges in Hong Kong. With only two such exchanges currently operating, HashKey and OSL, investors seeking to subscribe to spot Bitcoin have limited options.

Harvest International’s pioneering efforts in submitting the first spot Bitcoin ETF application in Hong Kong also faced obstacles due to the exchanges’ initial unfamiliarity with ETF processes and technology.