Harvest Global Investments, a Chinese fund house and one of the issuers of Hong Kong's first spot bitcoin and ethereum exchange-traded funds (ETFs), has tech/blockchain/article/3262055/harvest-ceo-wants-its-bitcoin-ether-etfs-stock-connect-mainland-investors-ecosystem-must-develop” target=”_blank” rel=”noopener nofollow”>confirmed plans to potentially open these funds to mainland Chinese investors through Hong Kong Stock Connect. This development could greatly expand the investor base and have a significant impact on the cryptocurrency market in Asia.
Harvest CEO Eyes Mainland Access for Hong Kong bitcoin ETF
Harvest Global currently offers bitcoin and Ether ETFs in Hong Kong, and these products allow direct investment in the respective cryptocurrencies. The possibility of including these ETFs in the ETF Connect scheme, part of the broader Stock Connect initiative launched in 2014 to link Hong Kong with mainland Chinese exchanges, was discussed by Harvest CEO Han Tongli at the bitcoin Asia conference. .
Han said: “We are not ruling out applying for our ETFs to be included in the Connect program, as long as everything goes well and smoothly in the next two years.”
The move to integrate cryptocurrency investments into Stock Connect could be an important step, given previously restricted access to such products for mainland investors. Hong Kong's approach to cryptocurrency regulation has been more open compared to mainland China, where most cryptocurrency trading activities are prohibited, but trading and ownership by individuals remains a legal gray area.
Despite the innovative nature of these spot crypto ETFs and their ability to offer direct exposure to cryptocurrencies rather than derivatives or shares of digital currency-related companies, initial trading volumes have been disappointing compared to the US market. . According to Han, this is partly due to the market's cautious view on Hong Kong's virtual asset policies and their implications for the future of these ETFs.
Han commented during a panel at the bitcoin Asia conference that the local market could potentially double the size of American products, emphasizing Hong Kong's strategic importance as a more neutral ground with broader appeal in Asia. He attributed the slow start to several factors, including market doubts about Hong Kong's commitment to becoming a crypto hub, and stated: “People are still skeptical about Hong Kong's status as a special (administrative) region. “It’s located in China and a lot of people don’t want Hong Kong to be more successful for whatever reason.”
In his discussion, Han also highlighted the competitive advantages of Hong Kong crypto products, such as the possibility of in-kind subscriptions (buying ETFs directly with bitcoin and ether) and the temporary waiver of management fees to attract investors. These features, along with potential listing on Stock Connect, are seen as instrumental in gaining traction and establishing Hong Kong as a key player in the global cryptocurrency market.
At the time of publication, btc was trading at $62,754.
Featured image created with DALL·E, chart from TradingView.com
