Harvest Fund Management plans to launch the first spot Bitcoin ETF in Hong Kong after the Lunar New Year.
The main focus remains on spot Bitcoin ETFs, with Hong Kong players not wanting to be left behind.
The Hong Kong branch of Harvest Fund Management is the latest entity to apply to local regulators for a spot Bitcoin exchange-traded fund (ETF). The move coincides with preparations for the first wave of spot crypto ETFs in Hong Kong.
Hong Kong’s first spot Bitcoin ETF
According to Tencent, Harvest plans to launch Hong Kong's first spot Bitcoin ETF after the Lunar New Year holiday on February 10. Following the approval of several funds in the United States, Hong Kong regulators have expressed their readiness to consider similar applications.
The ETFs are expected to provide a regulated avenue for investment in digital assets, bringing benefits such as fostering orderly markets for the asset class while enhancing investor protection, and connecting digital asset platforms with traditional financial institutions.
However, there are challenges with fee structures and regulatory compliance. Given the limited number of licensed cryptocurrency exchanges in Hong Kong, there is pressure to maintain reasonable fees.
Regulators have detailed strict standards for applicants, including strict custody regulations. They stipulate that ETF trading must be conducted through an SFC-licensed cryptocurrency platform or an authorized financial institution that adheres to the MAS’ regulatory standards.
Hong Kong asset management company enters spot cryptocurrency ETF
As Hong Kong grows in importance as a cryptocurrency hub, the city-state’s financial services firm Venture Smart Financial Holdings Ltd. has announced plans to submit an application to the Securities and Futures Commission to launch an ETF. Brian Chan, head of investments and products at the company, said,
"It's a market with huge potential. Our goal is to reach $500 million in assets under management by the end of this year."
Earlier this year, Livio Weng, chief operating officer of HashKey, a licensed cryptocurrency exchange in Hong Kong, revealed in an interview with Caixin that about 10 fund companies in Hong Kong are exploring the possibility of launching a spot crypto ETF.
Weng noted that these fund managers, including those backed by Chinese capital as well as Asian and European capital, are considering introducing spot crypto ETFs in Hong Kong.
About seven or eight of these companies have started discussions with the Hong Kong Securities and Futures Commission and formed teams to design these investment products.
HashKey has received a license from the Securities and Futures Commission to provide retail cryptocurrency trading services, and the company has also confirmed plans to consider participating in such a fund in Hong Kong.#香港推出稳定币 #比特币ETF
