Hong Kong’s ETFs May Bridge Mainland China to Crypto Markets

Expanding Crypto Reach

Harvest Global Investments, an issuer of Hong Kong’s inaugural Bitcoin and Ethereum ETFs, is considering making these funds accessible to mainland Chinese investors via the Hong Kong Stock Connect. This expansion has the potential to substantially grow the investor base in the Asian cryptocurrency market, where currently these ETFs provide direct investment opportunities in Bitcoin and Ether.

Strategic Market Integration

Han Tongli, Harvest CEO, expressed at the Bitcoin Asia conference that including these ETFs in the ETF Connect scheme might occur if conditions are favorable over the next couple of years. The potential integration into the Stock Connect program is a notable development, especially since mainland China has had stringent restrictions on cryptocurrency products.

Initial Trading Volume

Though these pioneering spot crypto ETFs grant investors direct cryptocurrency exposure, their trading volumes have started off modestly. According to Han, this reflects the market's tentative stance towards Hong Kong's virtual asset regulations and its long-term commitment to becoming a cryptocurrency hub. Han also emphasized the advantages of Hong Kong's ETFs, such as direct crypto investments and the waiving of fees, setting the stage for Hong Kong’s rising relevance in the global crypto narrative.