Will China Asset Management Company's application for a Bitcoin spot ETF through Hong Kong trigger another gold rush?

According to the official Chinese media "Securities Times" report, several fund companies in China are applying through their Hong Kong subsidiaries to layout Bitcoin spot ETFs, and the issuance of Bitcoin spot ETFs may be seen in the second quarter. The recent gold investment craze in China has also caused a second suspension of trading for gold ETFs, with premiums as high as 30%. It is estimated that with a large amount of funds having nowhere to go amid the downturn in the stock and property markets in China, the issuance of Bitcoin spot ETFs may create another whirlwind in Asia.

JPMorgan, Huaxia, and Southern Fund Apply for Bitcoin Spot ETF

According to reports, JPMorgan's Hong Kong subsidiary JPMorgan International has applied for a Bitcoin spot ETF with the Hong Kong Securities and Futures Commission, currently awaiting approval from Hong Kong's regulatory authorities.

Meanwhile, Huaxia Fund's Hong Kong subsidiary recently partnered with the Hong Kong Bitcoin licensed custodian HashKey Exchange, indicating that Huaxia Fund's Hong Kong subsidiary may be interested in Bitcoin spot ETFs and has made preliminary preparations.

As for Southern Fund Dongying, which has already laid out Bitcoin futures ETFs, the "Securities Times" only mentioned that the company "may also have arrangements in the spot ETF" but did not disclose more details or specific information.

According to previous reports, Hong Kong may open the issuance of Bitcoin spot ETFs as early as the second quarter, and it will be different from the physical creation model in the United States! This will provide more support to the Bitcoin market.

Will Hong Kong outperform? Approval for physical creation of Bitcoin spot ETF may come in the second quarter

Nowhere for Chinese Funds to Go, Gold ETF Trading Suspended for the Second Time

With Chinese investors facing a sluggish stock market and real estate market, and weak economic confidence, funds have recently poured into Gold ETFs. According to reports, China's large asset management company Huaxia Fund suspended Gold ETF trading on Monday, April 8th for the second time within a week after the product's premium soared. Despite gold hitting record highs recently, the fund had hit the daily limit for three consecutive trading days, with a premium of over 30%, leading to the second suspension of Gold ETF trading.

Due to strict restrictions on cryptocurrency trading and mining, asset management companies are unable to offer ETFs in mainland China. Several fund companies are seeking to issue Bitcoin spot ETFs in Hong Kong, likely recognizing the significant demand for funds in China. It is believed that once launched, this will bring about another wave of Bitcoin investment frenzy.