Harvest Global eyes China market with Spot Bitcoin and Ethereum ETFs on Stock Connect

Han Tongli, managing director of Harvest Global Investments, indicated that his company may seek approval to list Bitcoin and Ethereum spot exchange-traded funds (ETFs) on the Stock Connect program. Their listing is expected to potentially give mainland Chinese investors direct access to these products in about two years.

At the Bitcoin Asia conference in Hong Kong, Han said Harvest “does not rule out” pursuing the opportunity if “everything goes well.”

Hong Kong’s Role in Mainland China’s Transition to Crypto

Launched in 2014, the Stock Connect program facilitates trading between the Hong Kong and Shanghai stock exchanges, expanding their access to ETFs through the ETF Connect program. Providing investors on the continent with exposure to Bitcoin and Ethereum through related channels is the main and essential feature of Harvest’s interest in including crypto spot ETFs in the Stock Connect program.

The Stock Connect program is currently generating buzz due to its development against the backdrop of Beijing’s strict stance on cryptocurrencies. Although individual ownership and trading are ambiguous in terms of legality, most crypto trading activities are prohibited in mainland China.

Nonetheless, Harvest’s potential move is to fight to drive acceptance of crypto investments within regulated frameworks.

Challenges and opportunities

Although the introduction of Bitcoin and Ethereum spot ETFs in Hong Kong is important for establishing a crypto hub, the initial reception was not good as trading volumes did not meet expectations.

CEO of Harvest, Han Tonglisaid many people “are still skeptical about Hong Kong’s status as a special country.” [administrative] region,” suggesting a more cautious market approach.

Han believes that Hong Kong’s growth potential in the crypto market lies in representing the city as a “more neutral” region.

The CEO also mentioned that local crypto ETFs could eventually double the size of similar U.S.-based products, although he stopped short of saying when. In other words, the sooner Hong Kong can establish a virtual ecosystem, the more successful ETFs will be.

Impact on mainland Chinese investors

If Harvest Global Investments succeeds in getting its crypto ETFs spot on Stock Connect, a new investment avenue for mainland Chinese investors will open up. As the regulatory environment on the continent is quite uncertain, Stock Connect could even be a messiah in providing a regulated pathway for cryptocurrency investments.

However, what remains unclear is how Beijing’s digital asset policies will affect this system.

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