Chinese Equity Funds Submits Applications For Bitcoin ETFs in Hong Kong

Several prominent Chinese mainland equity funds are reportedly seeking approval to launch spot Bitcoin exchange-traded funds (ETFs) through their Hong Kong subsidiaries in response to a sustained rally in cryptocurrency prices and Hong Kong’s ambition to establish itself as a global fintech hub

Despite China’s previous adversarial stance towards Bitcoin, this move indicates a noteworthy shift in institutional interest.

The Securities Times reports that Harvest Fund and Southern Fund have applied for spot Bitcoin ETFs via their Hong Kong branches. These applications, pending regulatory approval, signal a significant endorsement of Bitcoin within both Chinese financial circles and regulatory bodies

Worth noting, Harvest Fund manages assets exceeding $230 billion, while Southern Fund oversees a portfolio exceeding $280 billion. Known for its pioneering initiatives in China’s public offering market, Southern Dongying could be one of the market leaders for Bitcoin ETFs in the region

Beyond Harvest Fund and Southern Fund, other Chinese public equity funds are also considering entry into the spot Bitcoin ETF market

For major Chinese funds, leveraging their Hong Kong subsidiaries offers a strategic advantage in gaining exposure to Bitcoin in a compliant manner. Through this approach, Chinese companies can participate in the rapidly growing cryptocurrency asset class without being constrained by mainland regulatory hurdles.

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Regulatory Milestones in Hong Kong

Despite China’s historically cautious attitude toward Bitcoin, Hong Kong’s more permissive regulatory environment has become a beacon for institutional investment in cryptocurrencies

Hong Kong’s Monetary Authority and Securities and Futures Commission (SFC) are open to considering spot cryptocurrency ETF applications, following global trends for regulatory acceptance of digital assets

The collaboration between Chinese equity funds and established cryptocurrency exchanges, such as the partnership between Hong Kong Asset Management and HashKey Exchange, further solidifies Hong Kong’s reputation as a global hub for cryptocurrency investments and innovation.

Developers of the TokenFi launchpad have unveiled a proposal designed to maximize the benefits for $TOKEN holders and stakers

The proposed initiative dubbed the “TOKEN Supercharge Program,” promises to transform the TokenFi landscape by granting exclusive privileges to those invested in the platform. Under the proposed scheme, TOKEN holders stand to gain unprecedented perks, including early access to platform issuances

Priority Access for Stakers

Central to the TOKEN Supercharge Program is the concept of priority access, wherein $TOKEN stakers are given priority in token sale events. This means that stakers will enjoy a considerable head start, often securing the lion’s share of the allocation well before the broader public even gets a chance, as per reports.

Multiplier Mechanism

A key highlight of the proposal is the implementation of a multiplier mechanism, which factors in both the value and duration of token staking. This approach assures that the more $TOKEN a user stakes and the longer it remains staked, the greater their allocation potential becomes.

The TokenFi staking program introduces distinct tiers based on the duration of staking:

• 3 months: 1.25x multiplier
• 12 months: 2x multiplier
• 24 months: 3x multiplier
• 48 months: 4x multiplier

Empowering Token Holders

While stakers take precedence, TOKEN holders will also enjoy preferential treatment in token sale events. However, their access comes after stakers have had their opportunity, however with slightly smaller allocations.

Qualifying for the Supercharge Program

To be eligible for the benefits outlined in the TOKEN Supercharge Program, users must stake a minimum of $1,000 worth of $TOKEN. However, those with larger stakes enjoy a significant advantage, with higher holdings translating to more substantial allocations.

Users who don’t stake or hold $TOKEN are still allowed to participate, but after stakers and holders have had their chance

Swift Implementation for Enhanced Utility

If the proposal is approved, the developers will reportedly implement it immediately, aiming to implement it within a few days after approval. The overall objective is to channel the majority of the value from token sale events to $TOKEN stakers and holders.

TokenFi’s $TOKEN is trading at $0.1595, as of writing, with almost no change over the last 24 hours.