Bitcoin
Harvest Global Eyes China Market with Spot Bitcoin and Ethereum ETFs on Stock Connect
Han Tongli, CEO of Harvest Global Investments, has indicated that his company may seek approval to list Bitcoin and Ethereum exchange-traded funds (ETFs) on the Stock Connect scheme. Its listing is expected to potentially give mainland Chinese investors direct access to these products within about two years.
During the Bitcoin Asia conference in Hong Kong, Han said that Harvest “does not rule out” pursuing this opportunity if “everything goes well and well.”
Hong Kong’s role in linking mainland China and crypto
Launched in 2014, the Stock Connect program facilitates trading between the Hong Kong and Shanghai stock exchanges, expanding your access to ETFs with the ETF Connect scheme. Providing mainland investors exposure to Bitcoin and Ethereum through related channels is the key essential feature of Harvest’s interest in including spot crypto ETFs in the Stock Connect Scheme.
The Stock Connect scheme is trending at the moment due to its development amid Beijing’s tough stance on cryptocurrencies. Although individual ownership and trading is ambiguous in terms of legality, most crypto trading activities are prohibited in mainland China.
However, Harvest’s potential move is to fight to promote the acceptance of crypto investment within regulated frameworks.
Challenges and opportunities
Although the introduction of spot Bitcoin and Ethereum ETFs in Hong Kong is significant for the establishment of a crypto hub, the initial reception was not good as trading volumes fell short of expectations.
CEO of Colheita, 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 the city’s portrayal as a “more neutral” region.
The CEO also mentioned that local crypto ETFs could eventually double the size of similar US-based products, although he refrained from saying when. In other words, the faster Hong Kong can establish a virtual ecosystem, the more ETFs will be successful.
Impact on mainland Chinese investors
If Harvest Global Investments can get its crypto ETFs spot on Stock Connect, a new investment avenue will open up for mainland China investors. As the regulatory environment on the continent is quite uncertain, Stock Connect could even be a messiah in offering a regulated path to cryptocurrency investments.
However, what remains unclear is how Beijing’s policies on digital assets will affect this Scheme.