Hong Kong issuer seeks spot Bitcoin ETF for mainland China

The CEO of Harvest, which issues a spot Bitcoin exchange-traded fund (ETF) in Hong Kong, is looking to make its Bitcoin ETF accessible to mainland Chinese investors.

Han Tongli is considering options that would allow mainland Chinese investors to purchase its Bitcoin

ETF Connect was launched in 2022, and it was approved by the China Securities Regulatory Commission and the Securities and Futures Commission. The tool is designed to promote the interaction and integration of Hong Kong and mainland China, offer diverse asset allocation choices and promote liquidity.

As long as “everything goes smooth and well” in the next two years, Harvest won’t rule out applying for its ETFs to be included in ETF Connect, Han said.

The inclusion of Bitcoin and Ether ETFs in the ETF Connect program would potentially be a massive bullish trigger on cryptocurrency markets, as China has a large investor pool. But it’s yet to be seen whether the Chinese government would accept the opportunity, as local authorities have maintained a very restrictive approach toward cryptocurrencies like Bitcoin for many years.

According to SCMP, Hong Kong’s Bitcoin and Ether futures-based ETFs — launched in 2022 — have not been included in Stock Connect.

Related: Is China warming up to Bitcoin ETFs? BTC investor’s reply sparks curiosity

Hong Kong’s capability to provide mainland Chinese investors with a Bitcoin ETF was a hot issue even before the launch of Bitcoin and Ether ETFs in Hong Kong on April 30.

Many industry analysts didn’t expect much market action from the launch because the Hong Kong ETF market is significantly smaller than the ones in the United States and mainland China.

According to Bloomberg data, some Hong Kong-based subsidiaries of mainland Chinese companies have 1,400% more assets in the mainland Chinese market than in the local one. According to some sources, all Hong Kong ETFs should account for 0.6% of the U.S. ETF market.

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