Harvest Fund Submits Hong Kong's First Bitcoin ETF Application; Launch Expected After the Spring Festival

In a groundbreaking move, Harvest Fund Hong Kong has submitted an application for a Bitcoin Spot Exchange Traded Fund (ETF) to the Hong Kong Securities Regulatory Commission. Harvest Fund's submission, made on January 26, represents the first such application for a Bitcoin spot ETF in the region. Given the U.S. Securities Regulatory Commission's recent approval of the first batch of US Bitcoin spot ETFs on January 11th, the Hong Kong Securities Regulatory Commission has been spurred to hasten the approval process. People familiar with the matter shared that the regulatory body plans to list Hong Kong's inaugural spot Bitcoin ETF on the Hong Kong Stock Exchange, ideally shortly after the Spring Festival. Intriguingly, Hong Kong's spot ETFs may offer a unique feature compared to those in the U.S. In addition to facilitating subscriptions in legal currency, the possibility of direct Bitcoin subscriptions is being considered. This development has piqued the interest of various investor managers, especially those linked to family offices. Despite their interest in the Bitcoin market, the complexities of investment types and operations had earlier deterred these investment managers from direct investment in Bitcoin. However, with the new prospect of spot ETFs, they now show considerable enthusiasm for this investment route. Harvest Fund Management Co., Ltd., set up in March 1999, is among the first ten fund management firms established in mainland China and is headquartered in Beijing. With more than 300 people in its investment research team, the company managed assets exceeding RMB 1.3 trillion as of June 2021, generating nearly RMB 230 billion in cumulative returns from its public funds.