Harvest Global Investments, the issuer of Hong Kong’s inaugural spot Bitcoin and Ethereum ETFs, is exploring the possibility of making these funds accessible to investors in mainland China through the Hong Kong Stock Connect.

This move could significantly broaden the investor pool and influence the cryptocurrency landscape across Asia.

Key Points:

• Proposed inclusion in ETF Connect could open cryptocurrency investments to a wider base in mainland China.
• Hong Kong’s regulatory environment offers a more favourable context for cryptocurrency ETFs.
• Unique features of Hong Kong’s crypto ETFs include direct purchases using cryptocurrencies and temporary waiving of management fees to attract investors.

Harvest CEO Advocates for Mainland China Access to Hong Kong’s Crypto ETFs

Harvest Global Investments is currently promoting its Bitcoin and Ether ETFs in Hong Kong, targeting direct investments in these cryptocurrencies. During the Bitcoin Asia conference, Harvest’s CEO, Han Tongli, suggested including these ETFs in the ETF Connect scheme. This scheme is part of the Stock Connect initiative that links Hong Kong with mainland Chinese exchanges, established in 2014.

Han expressed optimism about integrating these ETFs into the Connect program in the next two years, provided the operations continue smoothly. This potential expansion could greatly benefit mainland investors, who currently have restricted access to direct cryptocurrency investments due to stringent regulations against commercial crypto activities in mainland China.

In contrast, Hong Kong maintains a more lenient stance on cryptocurrency regulations, which might facilitate this integration. Han emphasized the cautious optimism in the market regarding Hong Kong’s crypto policies and their potential to shape the accessibility and success of these ETFs.