The CEO of Harvest, which offers a Bitcoin exchange-traded fund (ETF) in Hong Kong, is looking to make the ETF accessible to investors in mainland China. Harvest CEO Han Tongli is considering options to allow Chinese investors to purchase its Bitcoin and Ether ETFs through Hong Kong’s ETF Connect framework. The ETF Connect was launched in 2022 and approved by the China Securities Regulatory Commission and the Securities and Futures Commission. It aims to promote the integration of Hong Kong and mainland China, offer asset allocation choices, and boost liquidity. Harvest may apply for its ETFs to be included in the ETF Connect program if things go well in the next two years.
The potential inclusion of Bitcoin and Ether ETFs in the ETF Connect program could have a significant positive impact on cryptocurrency markets because of China’s large investor pool. It remains uncertain whether the Chinese government would accept this opportunity for its citizens as they have historically taken a restrictive approach towards cryptocurrencies like Bitcoin. Hong Kong’s Bitcoin and Ether futures-based ETFs, launched in 2022, have not been included in the Stock Connect.
The ability of Hong Kong to provide a Bitcoin ETF to mainland China investors has been a hot topic even before the launch of Bitcoin and Ether ETFs in Hong Kong in April 2024. Market analysts did not expect much market activity from the launch because the Hong Kong ETF market is much smaller compared to the United States or mainland China. Hong Kong-based subsidiaries of mainland China companies have significantly more assets in the mainland Chinese market than in the local one. Some sources suggest that all Hong Kong ETFs should account for 0.6% of the U.S. ETF market.
I highly doubt that Harvest’s ETFs will be successful in mainland China. The market there is just not interested in cryptocurrencies.
The potential integration of Bitcoin and Ether ETFs into the ETF Connect program is a testament to Hong Kong’s innovation and forward-thinking approach. Keep pushing the boundaries! 💡🌈
It’s a futile attempt by Harvest to enter the Chinese market. They should focus on other regions instead. 🌍
I’m thrilled to see progress being made towards integrating Hong Kong and mainland China through the ETF Connect program. This paves the way for even more exciting developments!
The Hong Kong ETF market is already small, why would they bother trying to cater to mainland China investors? Waste of time.