Harvest Fund Management’s Hong Kong subsidiary has submitted an application for a spot Bitcoin ETF, marking a significant milestone in the region, as reported by Tencent News on Monday.
The Securities and Futures Commission (SFC) is reportedly fast-tracking approval for the ETF, aiming for its listing on the Hong Kong Stock Exchange shortly after the Chinese New Year holiday, which falls between February 10th and February 17th this year.
Harvest Fund Management, primarily based in China, serves as an asset management firm catering to pension funds, profit-sharing plans, insurance companies, and enterprises. As of 2021, the fund managed assets valued at $121 billion.
Neither Harvest nor the SFC responded to Cryptonews’ request for comment by press time.
This development aligns with the recent approval by the US Securities and Exchange Commission (SEC) of 11 spot Bitcoin ETFs on January 10th, signaling a significant breakthrough for the industry after previous rejections. Notable approvals include BlackRock’s IBIT, VanEck’s HODL, and Grayscale’s GBTC.
Hong Kong is poised to follow the trend set by the US. In December, the SFC and the Hong Kong Monetary Authority jointly announced their readiness to accept applications for virtual asset spot ETFs, outlining the expected conduct standards for intermediaries distributing these funds.
Leaders in Hong Kong’s crypto industry view the SFC’s stance on spot Bitcoin ETFs favorably, considering it as a step towards expanding digital asset access. Julia Leung, CEO of Hong Kong’s SFC, has expressed the regulator’s willingness to evaluate such ETF proposals.
HashKey Group’s COO Livia Wend revealed that approximately ten fund firms are preparing virtual asset spot ETFs for launch in Hong Kong, with seven or eight in advanced stages of preparation as of January 10th.
Despite its openness to digital assets, Hong Kong maintains strict regulations in this domain, particularly following a major scandal involving crypto exchange JPEX, which allegedly affected over 2,000 victims last year. In response, the central bank and securities regulator have tightened crypto regulations, establishing a new working group to monitor local trading platforms.
