Leading Chinese asset managers China Asset Management (Hong Kong), Harvest Global Investments, and Bosera Asset Management (International) have received approval from Hong Kong's Securities and Futures Commission (SFC) to expand their services into virtual asset management. The subsidiaries plan to launch spot Bitcoin and Ethereum ETF products.
Key Developments
Approved Virtual Asset Services
- China AMC (Hong Kong) announced on April 15 its SFC approval for virtual asset management services
- Harvest International confirmed preparations for two spot crypto ETFs
- Bosera International partnered with HashKey Capital for two conditionally approved spot crypto ETFs
Operational Infrastructure
- Trading & Custody Partners: All three firms will utilize OSL Digital Securities, Hong Kong's first licensed virtual asset trading platform
- Additional Custodian: China AMC (Hong Kong) also works with BOCI-Prudential Trustee Limited
Market Context
Hong Kong has emerged as a progressive hub for virtual asset innovation while maintaining strict regulatory oversight. This contrasts with mainland China's continued ban on cryptocurrency trading.
Expert Perspectives
👉 Why Hong Kong is becoming a crypto ETF hub
Industry analysts highlight both opportunities and risks:
- Increased accessibility to digital assets through regulated products
- Enhanced liquidity for institutional and retail investors
- Significant volatility requiring careful risk assessment
"Investors must fully understand the compliance framework," cautioned Dr. Zheng Lei, Chief Economist at Samoyed Cloud Technology Group. "Virtual assets carry unique risks alongside their potential rewards."
China-Hong Kong Financial Integration
This development reflects the deepening connectivity between mainland China and Hong Kong's financial markets:
- Over 20 mainland public fund companies have established Hong Kong subsidiaries
Early entrants include:
- Southern Asset Management (2008)
- Harvest International (among first movers)
- China AMC (Hong Kong) (pioneer subsidiary)
- Bosera International (established 2010)
FAQ Section
Why are these ETF approvals significant?
These represent Hong Kong's first spot virtual asset ETFs from mainland-affiliated institutions, bridging traditional finance and digital assets.
How do spot crypto ETFs differ from futures-based ones?
Spot ETFs directly hold the underlying assets rather than derivatives contracts, typically resulting in lower tracking error.
What risks should investors consider?
Key risks include:
- Extreme price volatility
- Regulatory changes
- Custody security concerns
- Limited historical performance data
👉 Understanding crypto ETF risks
When will these ETFs launch?
While approved, exact launch dates remain undisclosed as firms finalize operational preparations and market conditions assessment.