Harvest, a renowned player in the Hong Kong financial market known for its groundbreaking initiatives, is set to make waves in the cryptocurrency sector. The company is planning to extend the reach of its Bitcoin and Ether ETF, aiming to capture a broader audience in mainland China.
To achieve this, Harvest is leveraging the ETF Connect platform, a collaborative effort between the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission. ETF Connect, which was introduced in 2022, was designed to facilitate the seamless exchange of assets between Hong Kong and mainland China, fostering increased liquidity and a diverse range of investment options across the regions. Han Tongli, CEO and Chief Investment Officer at Harvest, expressed his intention to apply for inclusion of their products in the program within the next two years, provided that all goes according to plan.
The inclusion of Bitcoin and Ether ETFs in ETF Connect holds the potential to energize the cryptocurrency markets. China, with its vast investor market, stands to be significantly impacted by this new investment opportunity. However, the current regulatory landscape in China imposes stringent restrictions on the cryptocurrency market, creating uncertainty regarding the acceptance of this enticing proposition by the Chinese government.
Interestingly, despite the launch of Bitcoin and Ether futures-based ETFs in Hong Kong last year, these products are yet to be integrated into Stock Connect. This highlights the existing complexities and challenges posed by regulations.
Disclaimer:
The views and opinions expressed in this article, whether by the author or any individuals mentioned, are solely for informational purposes and should not be considered as financial, investment, or any other form of advice. Investing or trading in cryptocurrencies carries a risk of financial loss.
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