International law firm Simmons & Simmons has acted as legal counsel to China Asset Management (Hong Kong) Limited on the launch of ChinaAMC Bitcoin ETF and ChinaAMC Ether ETF (the ETFs). Both ETFs will track the spot prices of Bitcoin and Ethereum (before fees and expenses) respectively, and are among the first of such products to be brought to market in Asia.
Operating within the umbrella of an open-ended fund company (OFC) framework in Hong Kong, both ETFs function as sub-funds of the newly-established ChinaAMC Select OFC. Similar to stocks or other exchange traded funds, investors can buy and sell shares of the ETFs through securities firms or banks.
The ETFs began trading on the Stock Exchange of Hong Kong on 30 April 2024, following a Circular issued by the Securities and Futures Commission (SFC) on 22 December 2023, in which the SFC stated that it would “consider authorising investment funds with exposure to virtual assets”. In line with the SFC’s requirements, the ETFs will acquire spot Bitcoin or Ethereum through SFC-licensed virtual assets trading platform(s).
The Simmons team advising China Asset Management (Hong Kong) was led by Ivy Yam, partner in the firm’s Hong Kong office and supported by Cara Chik and Anna Sze.
Commenting on the firm’s support for China AMC (HK), Ivy Yam said: “We are excited to be working with China Asset Management (Hong Kong) Limited again on a milestone project for the ETF industry and the virtual assets investment landscape in Asia.
There is an ever-increasing demand for investment products providing exposure to virtual assets globally and in Hong Kong. It is crucial that the regulatory framework maintains its robustness, while adapting to advancements in blockchain and virtual assets. We are delighted to have played a part in this process.”
