China Huaxia Fund: Approved by Hong Kong regulators, plans to launch Bitcoin and Ethereum spot ETFs

Hong Kong has recently approved several Bitcoin and Ethereum ETF applications, a move largely seen as the city's attempt to revive its status as a financial hub in Asia and to develop a crypto-friendly environment. The recent ETF approvals in Hong Kong are also seen as a catalyst for positive market developments, different from the Western influence on ETFs in the East.

Strategic Expansion of China Asset Management Companies

Huaxia Fund

One of China's largest asset management companies, Huaxia Fund, has announced that its Hong Kong division has received approval from the Hong Kong Securities and Futures Commission (SFC) to provide retail asset management services for cryptocurrency spot ETFs. The company will collaborate with OSL and Bank of China International to launch new Bitcoin and Ether spot ETFs. This move is expected to offer regulated and potentially more stable cryptocurrency investment options for retail investors.

Harvest Fund

It is reported that Harvest Fund has also received provisional approval for its two cryptocurrency spot ETFs. The company's partnership with OSL aims to address common issues faced by cryptocurrency investors, including high margin requirements. These ETFs will provide structured exposure to Bitcoin and Ether, offering a more direct avenue for both novice and experienced investors to participate in cryptocurrency investments.

Bosera Fund

Bosera Asset Management and HashKey Capital have also received conditional approval from the SFC to launch two joint cryptocurrency spot ETFs.

Approval with Limited Details

While details regarding the "conditional approval" are still unclear, the unique aspect of these products is that investors can directly use physical Bitcoin and Ether to create share trades, potentially simplifying the investment process.

Empowering Hong Kong Once Again

Bosera has stated that the launch of these virtual asset spot ETFs not only provides new asset allocation choices but also enhances Hong Kong's reputation as a global financial center and virtual asset hub. The introduction of these ETFs is seen as a crucial step in mainstreaming cryptocurrencies, boosting Hong Kong's attractiveness to international investors seeking diversified investment opportunities in the crypto space.