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Harvest Fund Applies for Spot Bitcoin ETF in Hong Kong

TL;DR

  • Harvest Hong Kong seeks approval for spot Bitcoin ETF in Hong Kong, following the U.S. lead after SEC’s recent green light.
  • Hong Kong regulators aim to fast-track the approval process, with hopes of listing the ETF on the stock exchange post the Spring Festival.
  • Local investor interest in Hong Kong spot ETFs grows despite potential differences, with family offices keen on both Bitcoin and fiat subscriptions.

In a significant move, Harvest Fund, one of China’s leading fund companies, has submitted an application for a spot Bitcoin ETF to the Securities and Futures Commission of Hong Kong.

This application marks the first of its kind in the region, as Harvest Fund Hong Kong Company takes the lead in exploring opportunities in the booming Bitcoin ETF market.

Regulatory momentum

Hong Kong’s Securities Regulatory Commission is actively working to expedite the approval process for the Bitcoin ETF. The aim is to list the inaugural Hong Kong spot Bitcoin ETF on the Hong Kong Stock Exchange shortly after the Spring Festival.

This swift move by Hong Kong comes in the wake of the United States’ approval of spot Bitcoin ETFs. The U.S. Securities and Exchange Commission granted approval for the first batch of these ETFs on January 11, signaling a proactive approach toward embracing digital currencies.

Market landscape

The United States currently hosts 27 Bitcoin spot ETFs, with notable players like Grayscale Bitcoin Trust (GBTC) holding a substantial market share of $20.2 billion. Other players, including BlackRock’s IBIT, Proshare’s BITO, and Fidelity Fund’s FBTC, are making their presence felt.

In line with the U.S. approach, the Hong Kong Securities Regulatory Commission may consider approving multiple institutions simultaneously for Bitcoin spot ETFs. Harvest Fund isn’t the sole contender in this race; others, such as Venture Smart Financial Holdings Ltd., are also eyeing the opportunity.

Experts in Hong Kong’s fund sector believe that mirroring the U.S. spot Bitcoin ETF landscape may lead to similar performance outcomes. Larger institutions like BlackRock and Fidelity could experience rapid growth thanks to their extensive investor base and broader customer acquisition channels.

Investor interest in spot Bitcoin ETF

Despite potential scale differences compared to the U.S. market, family office investor managers in Hong Kong are showing heightened interest in subscribing to local spot ETFs. Notably, Hong Kong’s spot ETFs may introduce the option for direct Bitcoin subscriptions, alongside legal currency subscriptions.

As the Bitcoin ETF landscape continues to evolve globally, Hong Kong is poised to make its mark. Harvest Hong Kong’s application represents a significant step in the region’s embrace of digital currencies. With regulatory momentum and investor interest on their side, the future of Bitcoin ETFs in Hong Kong appears promising.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Nick James

Nick is a technologist with a special interest in Blockchain technology and cryptocurrencies. He has actively participated in the industry for several years. His main passion is sharing news within the crypto community.

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