Harvest CEO Han Tongli targets making his company’s ETF in Hong Kong easily accessible to all investors in mainland China.
The CEO of Harvest, the issuer of an exchange-traded fund (ETF) in Hong Kong that tracks spot Bitcoin BTC tickers down $61,153, is attempting to make the Bitcoin ETF available to investors in mainland China.
Han Tongli, chief investment officer and CEO of Harvest is evaluating alternatives that will enable investors from mainland China to purchase the company’s Bitcoin and Ether ETFs for $2,935 each. According to a May 9 report by The South China Morning Post, it would be feasible if the company offered its products via Hong Kong’s ETF Connect framework.
The ETF Connect was authorized by the Securities and Futures Commission and the China Securities Regulatory Commission before its 2022 launch. The instrument is intended to facilitate interaction and integration between Hong Kong and the People’s Republic of China, provide various asset allocation options, and increase liquidity.
As long as “everything goes smoothly and well” over the next two years, Harvest remains open to applying to have its ETFs included in the ETF Connect, according to CEO Tongli.
Given the sizeable investor base in China, the prospective inclusion of Bitcoin and Ether ETFs in the ETF Connect program could be an enormous bullish catalyst for cryptocurrency markets. However, the extent to which the Chinese government would embrace this opportunity for its citizens remains to be seen, given that local authorities have long adhered to a stringent stance regarding cryptocurrencies such as Bitcoin.
The Stock Connect does not appear to include the Bitcoin and Ether futures-based ETFs introduced in Hong Kong in 2022, per SCMP.
Because the Hong Kong ETF market is considerably smaller than those in the United States and mainland China, many industry analysts anticipated little market activity in response to the launch.
According to Bloomberg data, some Hong Kong-based subsidiaries of mainland Chinese companies have 1,400% more assets than in the local market. According to some sources, all Hong Kong ETFs should represent 0.6% of the U.S. ETF market.
