Reportedly, China’s major mainland equity funds have discreetly entered the spot Bitcoin ETF market, as per sources.

Mainland Chinese investment firms are leveraging their Hong Kong subsidiaries to explore spot Bitcoin ETFs, demonstrating substantial interest in this emerging investment avenue.

As per a report from China’s state-owned newspaper Securities Times, mainland-based equity firms have purportedly filed applications to introduce spot Bitcoin exchange-traded funds (ETFs) through their Hong Kong branches. While the complete roster of Chinese entities eyeing spot Bitcoin ETFs remains undisclosed, it’s confirmed that Harvest Fund Management’s Hong Kong arm is among those awaiting approval from the Securities & Futures Commission (SFC) of Hong Kong since January. The report further suggests that other Chinese public equity firms are evaluating the feasibility and potential of spot Bitcoin ETF products.

Moreover, China Asset Management’s Hong Kong division, one of China’s premier asset management firms, has reportedly inked a collaboration pact with HashKey, a licensed crypto exchange in Hong Kong, to jointly propel initiatives related to Web 3.0 in the local asset management sector. Although a definite timeline for spot Bitcoin ETFs in Asia hasn’t been unveiled, insiders speculate that relevant applications might surface as early as this quarter.

The impetus toward spot crypto ETFs gathered momentum subsequent to a joint circular issued by the SFC and the Hong Kong Monetary Authority in late 2023, acknowledging the escalating interest in launching spot crypto ETFs. While the SFC has granted authorization for licensed crypto providers to offer crypto futures ETFs in the region, regulatory nod for spot ETFs is still pending.