Harvest Fund Pursues Spot Bitcoin ETF in Hong Kong Amid Growing Interest

Application Filed

Harvest Fund Management's Hong Kong division, a prominent Chinese asset manager, has reportedly submitted an application for a spot bitcoin exchange-traded fund (ETF) to the local financial regulator. This move indicates Hong Kong's readiness for its first batch of spot cryptocurrency ETFs.

Tencent News Report

According to Tencent News, Harvest seeks to launch the city's inaugural spot Bitcoin ETF post the Lunar New Year holiday, slated for February 10 this year. The application is currently with the Securities and Futures Commission (SFC), but both Harvest and the SFC have not responded to The Block's request for comment.

Industry Momentum

Earlier this month, Livio Weng, COO of Hong Kong crypto exchange HashKey, mentioned that approximately 10 fund companies are exploring potential spot crypto ETF launches in the city. Venture Smart Financial Holdings Ltd. (VSFG) from Hong Kong aims to unveil its spot bitcoin ETF in Q1, as reported by Bloomberg.

Stablecoin Interest

Amidst Hong Kong's efforts to establish stablecoin regulations, several companies, including Harvest Global Investments, RD Technologies, and VSFG, express interest in stablecoin-related trials. Discussions with the Hong Kong Monetary Authority (HKMA) are ongoing, with stablecoin sandbox processes anticipated to commence in Q1 and extend through the first half of 2024, according to Sean Lee, Senior Advisor and Head of Stablecoin at VSFG.

Regulatory Landscape

In December, the HKMA, in collaboration with the Financial Services and the Treasury Bureau, outlined that a stablecoin issuer would require a license if it issues a stablecoin referencing the value of one or more fiat currencies in Hong Kong. Eddie Yue, CEO of the HKMA, emphasized the potential role of stablecoins as a bridge between traditional finance and the virtual asset market, highlighting their importance in the evolving digital payment ecosystem.