Harvest Fund Management Files for First Spot Bitcoin ETF in Hong Kong

Harvest Fund Management, a Hong Kong-based asset management firm, has filed with the Securities and Futures Commission (SFC) for the launch of the first spot Bitcoin ETF in Hong Kong. The news was reported by Tencent News.

According to the report, the regulator could approve the listing of the product after the Lunar New Year holiday (February 15).

Sources told Tencent News that the SFC could follow the same tactic as the U.S. Securities and Exchange Commission (SEC), approving multiple applications for the launch of the instrument. At present, there are no other applicants.

In January, HashKey CEO Livio Wen noted that about a dozen companies in Hong Kong are exploring the possibility of launching spot Bitcoin ETFs.

Sources also said that the SFC could allow the redemption of shares of exchange-traded funds in cryptocurrency. This is a difference from the SEC's position, which approved the process only in cash form.

In September, Bloomberg reported, citing informed sources, that Harvest, RD Technologies, and VSFG have been working with the Hong Kong Monetary Authority (HKMA) on potential pilot projects for stablecoins.

In a comment to The Block, VSFG's senior advisor and head of the stablecoin division, Sean Lee, predicted the launch of a regulatory sandbox in the first quarter of 2024.

It is expected that the HKMA will introduce mandatory licensing for stablecoin issuers in 2023-2024. The regulator plans to oversee the management, issuance, and maintenance of the tokens' peg to fiat.