A major Hong Kong-based Chinese fund, Harvest Global Investments, has applied for a spot bitcoin ETF. Would it be easier to set up a fund like this in China than in the US? Can such movements be regarded as the onset of a tectonic shift in the crypto market and the widespread integration of crypto into the financial system?
Yes, it may be easier to establish such a fund in China than in the US for several reasons:
1. Regulation of the cryptocurrency market in China is more flexible and quickly adapting. The Chinese authorities actively support innovation in this area. At issue is Hong Kong, not mainland China. Hong Kong enjoys a special administrative status and runs its own financial system.
2. The regulatory approval process for financial products in China could take less time compared to the US.
3. There are more companies in China that are ready to issue and support crypto ETFs at the initial stage.
This move can be seen as the beginning of more active integration of cryptocurrencies into the traditional financial system. The successful launch of crypto ETFs has given the green light to other countries.