Harvest CEO Looks to Make Bitcoin ETF Accessible to Mainland Chinese Investors

Harvest CEO Looks to Make Bitcoin ETF Accessible to Mainland Chinese Investors

The CEO of Harvest, a company that issues a spot Bitcoin exchange-traded fund (ETF) in Hong Kong, is exploring ways to make its Bitcoin ETF accessible to mainland Chinese investors. Han Tongli is considering offering Harvest’s Bitcoin and Ether ETFs through Hong Kong’s ETF Connect framework, as reported by the South China Morning Post on May 9.

ETF Connect, launched in 2022 and approved by the China Securities Regulatory Commission and the Securities and Futures Commission, aims to promote interaction and integration between Hong Kong and mainland China, offer diverse asset allocation choices, and enhance liquidity.

Han Tongli stated that if everything goes smoothly in the next two years, Harvest may apply for its ETFs to be included in ETF Connect. The inclusion of Bitcoin and Ether ETFs in the program could potentially have a significant bullish impact on cryptocurrency markets, given China’s large investor pool. However, it remains to be seen whether the Chinese government will embrace this opportunity, as they have historically taken a restrictive stance on cryptocurrencies like Bitcoin.

Despite the launch of Bitcoin and Ether futures-based ETFs in Hong Kong in 2022, they have not been included in Stock Connect, according to SCMP. The potential for Hong Kong to offer mainland Chinese investors access to a Bitcoin ETF has been a topic of interest, especially considering the size disparity between the Hong Kong and mainland Chinese ETF markets.

Industry analysts have expressed skepticism about the market impact of the ETF launch in Hong Kong, noting that the local market is much smaller compared to the United States and mainland China. Some Hong Kong-based subsidiaries of mainland Chinese companies reportedly have significantly more assets in the mainland Chinese market than in the local one.

The move to make Harvest’s Bitcoin ETF accessible to mainland Chinese investors could have far-reaching implications for the cryptocurrency market, but it ultimately depends on the willingness of the Chinese government to embrace this opportunity.