Source: Wall Street News
Hong Kong subsidiaries of mainland public funds, Bosch International, Huaxia Fund (Hong Kong), and Harvest International have successively disclosed that the issuance of virtual asset spot ETF products has been approved in principle by the Hong Kong Securities Regulatory Commission.
Following the listing of the first batch of 11 Bitcoin spot ETFs in the US, financial institutions in Hong Kong, China are also speeding up the layout of virtual currency asset spot ETFs.
On Monday, April 15, according to public information, Hong Kong subsidiaries of mainland public funds, Bosch International, Huaxia Fund (Hong Kong), and Harvest International have been approved in principle by the Hong Kong Securities Regulatory Commission to issue virtual asset spot ETF products.
According to reports, after approval of this business, the manager can provide virtual asset management services to investors and apply for supervision to issue ETF products that can invest in spot Bitcoin and spot Ether. Ordinary investors can purchase related products through the Hong Kong Stock Exchange.
Data from Huaxia Fund (Hong Kong) also shows that it will work with OSL Digital Securities Co., Ltd. and BOC International UK Prudential Trust Co., Ltd. to research and deploy this.
The full name of a Bitcoin ETF is a “Bitcoin traded open index fund”. It is an open-ended fund with a variable fund share listed on an exchange. Its assets are mainly invested in Bitcoin and track the price of Bitcoin.
After successful listing and issuance, this batch of virtual asset spot ETFs will become the first batch of spot Bitcoin and spot Ether ETF products in Asia.
In the virtual asset management list published earlier on the Hong Kong Securities Regulatory Commission's official website, a total of 19 institutions have been approved for virtual asset management services, including Harvest International and Huaxia Fund (Hong Kong).
It is worth noting that just three months ago, on January 11, Beijing time, the US Securities and Exchange Commission (SEC)Bitcoin spot ETF approved for the first time in history, authorized the listing and trading of 11 ETFs. This batch of Bitcoin spot ETFs frantically “sucked in gold” after listing. Among them, BlackRock's spot Bitcoin ETF — IBIT reached within a period of one monthThe $10 billion milestone.
Since this year, the price of Bitcoin has fluctuated, and there have been many sharp rises and falls. At the time of publication on April 15, the price of Bitcoin was about 66,482 US dollars, falling by more than 3% within 24 hours.
Since news broke that Harvest International took the lead in submitting a Bitcoin spot ETF application to the Hong Kong Securities Regulatory Commission, the approval and layout of Bitcoin spot ETFs has received widespread attention from the outside world.
According to Shenzhen Commercial Daily, Xu Weizhi of Guoxin Securities (Hong Kong) Research Institute pointed out that the launch of Bitcoin spot ETF will push Bitcoin and other crypto assets to reach a larger financial base, including qualified investors, institutional investors, and retail investors, injecting tremendous vitality into the crypto market, bringing more liquidity, and accelerating the entire crypto industry's compliance process.
Considering Bitcoin as an extremely volatile asset, Bank of China Research Institute researchers previously told the media:
“The Hong Kong region of China has very strict regulations on virtual assets. As a cryptographic virtual financial product, the price of Bitcoin fluctuates very frequently, and ETF fund products that invest in and trade Bitcoin also have very high risk attributes.”
“Although US regulators have officially approved Bitcoin spot ETFs, the risk characteristics of related financial products cannot be ignored. In particular, recently, currency values have frequently reached new highs, risk premiums have risen to high levels, and pullback risks have quietly increased. This is quite a risk for investors.”
editor/tolk