Hong Kong Receives Bitcoin ETF Application, China's Harvest Global Shows Interest in Stablecoin

• Harvest Global Investments Submits Application for Spot-Bitcoin ETF in Hong Kong
• Previous Spot-Bitcoin ETF Approvals
• Venture Smart Financial Holdings and Its Plans
• Discussion with the Hong Kong Monetary Authority (HKMA)
• The Stablecoin Sandbox: Aim and Procedure
• Regulatory Proposals & Feedback
• Market Dynamics: Analyst Views

Harvest Global Investments Submits Application for Spot-Bitcoin ETF in Hong Kong

Harvest Global Investments, a prominent asset-management firm based in China, has reportedly submitted an application for a spot-bitcoin exchange-traded fund (ETF) to Hong Kong's Securities and Futures Commission (SFC). Additionally, the firm is involved in discussions about the city's stablecoin sandbox, according to multiple reports from Tencent News and Bloomberg.

Previous Spot-Bitcoin ETF Approvals

In December 2023, Hong Kong regulators announced their readiness to receive applications for spot crypto ETFs. This declaration came less than a fortnight after almost a dozen potential candidates had been greenlit for spot-bitcoin ETFs in the United States.

Venture Smart Financial Holdings and Its Plans

Meanwhile, Venture Smart Financial Holdings, a Hong Kong-based company, has also expressed its intention to apply for a spot bitcoin ETF. As per sources, it envisages to begin trading by the first quarter as reported by Bloomberg earlier this month.

Discussion with the Hong Kong Monetary Authority (HKMA)

Both Venture Smart Financial and Harvest Global Investments, along with RD Technologies, are among others reported to be engaged in dialogues with the Hong Kong Monetary Authority (HKMA) concerning its proposed stablecoin sandbox. The information came to light via Bloomberg, citing sources familiar with the proceedings.

The Stablecoin Sandbox: Aim and Procedure

The spokesperson for HKMA shared that the sandbox arrangement is designed for fiat-reference stablecoin (FRS) issuers who have genuine interest and a feasible plan for issuing FRS in Hong Kong. The HKMA is laying the groundwork for the sandbox's launch and will disclose relevant specifics in due time. A prompt response to a request for comment made to HKMA, who holds a central banking stake in the region's stablecoin initiatives, was not received.

Regulatory Proposals & Feedback

Regulators in Hong Kong have released draft proposals to supervise stablecoin issuers through a licensing regime. They have requested feedback on these proposals by the end of February.

Market Dynamics: Analyst Views

As the momentum around Bitcoin$42,260 -0.64% ETFs continues to build in Asian markets following approvals in the U.S., analysts maintain an optimistic outlook.

Updated as of January 29, 10:16 UTC with responses from both HKMA and SFC.

Edited by Jonathan Stoker