Hong Kong Harvest Fund Administration Seeks Approval for Spot Bitcoin ETF

The first focus stays on spot Bitcoin ETFs and Hong Kong gamers do not need to be left behind.

Harvest Fund Administration’s Hong Kong department is the most recent entity to use for a spot Bitcoin exchange-traded fund (ETF) with native regulators. The transfer is according to Hong Kong’s preparations for the primary wave of spot crypto ETFs.

First Spot Bitcoin ETF in Hong Kong

In response to the Tencent report, Harvest plans to launch town’s first Bitcoin ETF after the New 12 months holidays on February 10. Following the approval of a number of funds in the US, regulators in Hong Kong have indicated their willingness to contemplate related purposes.

These ETFs are anticipated to supply a regulated alternative for investing in digital property, promising advantages reminiscent of selling orderly markets for the asset class whereas strengthening investor safety, and bridging digital asset platforms with conventional monetary establishments.

Nonetheless, challenges emerge within the type of reimbursement constructions and regulatory compliance. Given the restricted variety of licensed crypto exchanges in Hong Kong, there’s stress to take care of cheap charges.

The regulators have detailed strict standards for candidates, together with strict custodial guidelines. They stipulate that ETF transactions should be made via an SFC-licensed crypto platform or via approved monetary establishments that adhere to HKMA regulatory requirements.

Hong Kong Asset Managers Dive Into Spot Crypto ETFs

Amid Hong Kong’s rising significance as a crypto hub, Enterprise Good Monetary Holdings Ltd., a monetary providers agency from the city-state, introduced plans to use to the SFC to launch the ETF. Brian Chan, group head of investments and merchandise on the firm, mentioned:

“It’s a market with monumental potential. Our aim is to have $500 million in property below administration by the top of this yr.”

In an interview with Caixin earlier this yr, Livio Weng, the chief working officer of HashKey, a licensed crypto change in Hong Kong, revealed that about ten fund corporations within the metropolis are exploring the potential for launching spot crypto ETFs.

Weng famous that these fund managers, together with these backed by Chinese language capital and others from Asia and Europe, are contemplating introducing spot crypto ETFs in Hong Kong.

About seven or eight of those corporations have already began discussions with Hong Kong’s SFC and put collectively groups to design these funding merchandise.

HashKey, which has obtained a license from the SFC to supply retail crypto buying and selling providers, additionally confirmed plans to contemplate collaborating in such funds in Hong Kong.