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China ETF Leak: Potential Game-Changer for Bitcoin and Crypto Market Revealed

John KumiBy 0Edited by John Kiguru 15. April 20243 Mins Read
  • Months after the US Securities and Exchange Commission approved its first-ever spot Bitcoin ETF, Hong Kong’s Securities and Futures Commission (SFC) is reportedly on the verge of agreeing on a similar product in Hong Kong. 
  • It is reported that four mainland Chinese and Hong Kong Asset Managers have submitted their applications to this effect. 

An asset manager in China, Harvest Fund Management, is reportedly in line to receive approval from Hong Kong’s Securities and Futures Commission (SFC) to launch a spot Bitcoin (BTC) Exchange-Traded Fund (ETF) as early as this month. Bloomberg first reported this, citing two anonymous individuals believed to be close to the matter.

According to the report, four mainland Chinese and Hong Kong Asset Managers have so far submitted applications. Among them include the Hong Kong units of China Asset Management, and Bosera Asset Management. Many other asset managers including Hong Kong-based Value Partners have also disclosed their intention to explore the possibility of launching a spot Bitcoin ETF as published by local news outlets.

BlackRock's IBIT Nears Grayscale's GBTC in the Battle for Bitcoin Supremacy

Initial attempts to get more details from SFC and the three Chinese companies proved futile as they declined to comment. Regardless, Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto wealth manager, commented on the impact of an ETF-related product approval on the overall crypto industry. 

The significance of Hong Kong ETFs is far-reaching as they could bring in fresh global investment and push crypto adoption to a new height.

Pending the ETF decision, the China Asset Management and Harvest Fund Management’s Hong Kong units have received the green light to manage portfolios that invest more than 10% of virtual assets. 

Hong Kong’s Spot Bitcoin ETF Could Accelerate Crypto Adoption

In 2021, mainland China banned all “virtual currency-related business activities,” claiming it endangers the safety of people’s assets as reported by Crypto News Flash. That resulted in Bitcoin falling by more than $2000. According to the latest development, offshore Chinese financial institutions could participate in the crypto development in Hong Kong. To most market analysts, the potential approval of a spot Bitcoin ETF in Hong Kong could be one of the biggest market-moving events this year.

As disclosed by Statista, the number of crypto users in Hong Kong is expected to reach 1.68m by 2028. The user penetration would be 18.94% in 2024 and 21.22% by 2028. This implies that the potential ETF approval could accelerate crypto adoption and drive billions of dollars into the market. 

Bloomberg Intelligence analyst Eric Balchunas also spoke about how local investors are desperate for gold ETF in China. 

Wild stuff in China as local investors pile into a gold stock ETF pushing its premium to 30% and forcing it to halt trading. Investors are so desperate to buy things that are not linked to their own economy or stock market, which has been in the gutter. For those wondering buying bitcoin ETFs is not allowed there. If it were my guess is they’d be going gaga for them given how much fomo [fear of missing out]they have been showing for gold and U.S. stocks.

At press time, Bitcoin was trading at $67,280 after declining by 5% in the last 24 hours and 8% in the last 30 days. 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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