Chinese Fund Giant Harvest Submits Spot Bitcoin ETF Application to Hong Kong SEC

Amid strong fund inflows within a month of launching the spot Bitcoin ETFs in the US, financial players from other markets are exploring similar opportunities. Last week on January 26, one of China’s largest fund companies – Harvest Hong Kong – applied for a spot Bitcoin ETF approval from the Securities and Futures Commission.

Harvest Fund Initiates Milestone Move With Bitcoin ETF Application

In a significant development, Harvest Fund Hong Kong Company has taken the lead in submitting an application for a Bitcoin spot Exchange-Traded Fund (ETF) to the Securities and Futures Commission of Hong Kong. Tencent News “First Line” exclusively obtained this information, marking the first instance of such an application in the region.

Sources from Tencent News “First Line” reveal that the Hong Kong Securities Regulatory Commission is actively working towards expediting the approval process for the first Hong Kong Bitcoin spot ETF. The envisioned timeline aims to have the inaugural Hong Kong spot Bitcoin ETF listed on the Hong Kong Stock Exchange post the Spring Festival.

This move comes just two weeks after the U.S. Securities and Exchange Commission granted approval for the first batch of U.S. spot Bitcoin ETFs on January 11. The accelerated pace of progress in Hong Kong follows the regulatory green light given to similar ETFs in the United States, signaling a proactive approach by the Hong Kong Securities Regulatory Commission in embracing digital currencies.

Hong Kong Gearing Up To Follow US Footprint

Recent data analysis reveals that within the landscape of 27 Bitcoin spot ETFs in the United States, Grayscale Bitcoin Trust (GBTC) holds a substantial market share at $20.2 billion. Other notable players in the U.S. market include BlackRock’s IBIT ($1.8 billion), Proshare’s BITO ($1.78 billion), and Fidelity Fund’s FBTC ($1.6 billion).

Tencent News “First Line” has gathered insights suggesting that the Hong Kong Securities Regulatory Commission may adopt a similar approach to the United States, approving multiple institutions simultaneously. But Harvest Fund is not the sole player in the race for a spot Bitcoin ETF. Other financial players like Venture Smart Financial Holdings Ltd. are also eyeing a similar product launch.

Analysts from Hong Kong’s fund sector opine that mirroring the U.S. spot Bitcoin ETF landscape may result in similar performance outcomes. Larger institutions, such as BlackRock and Fidelity, could potentially experience more rapid growth due to their extensive investor base and broader customer acquisition channels.

Family office investor managers in Hong Kong express heightened interest in subscribing to local spot ETFs, despite acknowledging potential discrepancies in scale compared to the U.S. market. Notably, Hong Kong’s spot ETFs may introduce the option for direct Bitcoin subscriptions, in addition to legal currency subscriptions.