Harvest Global Investments, a prominent asset management company based in China, has submitted an application for a spot Bitcoin exchange-traded fund (ETF) with Hong Kong’s Securities and Futures Commission (SFC). The move comes as Hong Kong regulators signaled their readiness to consider applications for spot crypto ETFs in December 2023, shortly after several applicants secured approval for such ETFs in the United States.
Venture Smart Financial Holdings, another Hong Kong-based firm, has also announced its intention to file a spot Bitcoin ETF application and aims to commence trading in the first quarter of this year, as reported by Bloomberg earlier this month.
Harvest Global Investments, alongside Venture Smart Financial and RD Technologies, is reportedly engaged in discussions with the Hong Kong Monetary Authority (HKMA) regarding the city’s stablecoin sandbox. The sandbox initiative is designed for issuers of fiat-reference stablecoins (FRS) who demonstrate a genuine interest and a viable plan for issuing FRS in Hong Kong.
The HKMA is in the process of preparing for the launch of the stablecoin sandbox and plans to disclose relevant details in due course. As part of the regulatory framework, Hong Kong’s regulators have put forth proposals for supervising stablecoin issuers through a licensing regime. Feedback on these proposals is actively sought, with the consultation period extending until the end of February.
The application for a spot Bitcoin ETF by Harvest Global Investments reflects the growing interest and momentum in the cryptocurrency space, particularly in the Asian financial hub of Hong Kong. The move aligns with global trends where regulatory clarity and approval for crypto-related financial products are becoming increasingly prevalent. As Hong Kong positions itself as a key player in the evolving crypto landscape, ongoing discussions with regulators and active participation in initiatives like stablecoin sandboxes contribute to shaping the regulatory framework for the industry. The outcomes of these developments will likely have implications not only for local players but also for the broader crypto ecosystem.
Digital Assets Desk