[NEW] Major Chinese fund applies for Hong Kong's first Bitcoin spot ETF

Harvest Global Investments applied for Hong Kong's first spot Bitcoin ETF on the 26th.

With the Hong Kong Securities and Futures Commission (SFC) showing a positive attitude toward approval, it has long been expected that the application for a spot Bitcoin ETF will be submitted soon.

According to Tencent News, the ETF may be approved for listing on the Hong Kong Stock Exchange as early as the Lunar New Year (February 10-17).

At this time, only Harvest appears to have officially submitted an application for a spot Bitcoin ETF. Harvest is the Hong Kong branch of Harvest Fund Management, a mainland China-based company that ranks among the top 10 asset management companies. The company manages various types of funds, including mutual funds, pension funds, and other investments.

Although cryptocurrency trading is prohibited in China, it has been noted that interest among Chinese citizens remains high. On the other hand, since investment in ETFs is not prohibited, if this is realized, there is a high possibility that Chinese capital will flow into the Bitcoin market. Tencent News reported that "Compared to U.S. spot ETFs, Hong Kong spot ETFs will be more likely to directly purchase Bitcoin in addition to incorporating fiat currency."

Bloomberg also reported that Hong Kong-based asset management company Venture Smart Financial Holdings is also preparing to apply for a Bitcoin spot ETF in Hong Kong in the first quarter.

Stablecoin movement

According to a person familiar with the matter who spoke to Bloomberg, Harvest is in discussions with the HKMA about stablecoins in addition to a Bitcoin spot ETF. Hong Kong is preparing to introduce stablecoin-related regulations as soon as this quarter.

In addition to Harvest, fintech specialists RD Technologies and Venture Smart Financial Holdings are also in discussions with the HKMA about stablecoin sandbox plans.

The HKMA and the Financial Services and Treasury Department began discussions on regulating stablecoins last month. At the time, they said that the "regulatory sandbox will meet the expectations of regulators." The people also said that the next framework is not expected to be completed by March, and that approval is not expected to be given to all companies that want to participate in the pilot.

References:Tencent News,Bloomberg
Image: Shutterstock

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