Benzinga - In a significant development for the cryptocurrency market in Hong Kong, Harvest Fund has officially applied to the first-ever Bitcoin (CRYPTO: BTC) spot Exchange Traded Fund (ETF) with the Hong Kong Securities and Futures Commission (SFC).
Why It Matters:
The submission of this application by Harvest Fund is a clear indicator of the growing interest and acceptance of cryptocurrencies in mainstream financial markets.
This initiative follows closely on the heels of the U.S. Securities and Exchange Commission's approval of the first batch of Bitcoin spot ETFs just two weeks prior, a decision that has seemingly influenced the SFC's accelerated pace in this domain.
The potential approval of this ETF in Hong Kong could significantly broaden investment opportunities and attract a wider range of investors, including family offices that have previously been hesitant to directly engage in the Bitcoin market due to its complexity and perceived risks.
According to Anndy Lian, an intergovernmental blockchain advisor, the Chinese stock market was one of the worst performers globally in 2023, funds looking for crypto alternatives are a big plus for the crypto industry.
"Harvest Fund ranked China's sixth-largest public fund manager. Having them filing for Bitcoin ETF would mean more Chinese money flowing into the ecosystem. This could be a start of seeing a rise in Bitcoin or Crypto Exchange-Traded Products (ETPs) too," he says.
Read Also: Unlocking Crypto Riches: Crypto Expert Shares Guide How To Value Tokens
What’s Next:
The SFC is reportedly eager to expedite the approval process for Hong Kong's first spot Bitcoin ETF, with plans to list it on the Hong Kong Stock Exchange shortly after the Chinese New Year.
This development could pave the way for multiple institutions to enter the market, mirroring the approach taken in the U.S., where firms like Grayscale, BlackRock Inc. (NYSE: BLK), and Fidelity rapidly grew their ETFs' sizes.
However, as of now, Harvest Fund remains the only institution to have applied, despite interest from others. Additionally, Hong Kong's ETF might distinguish itself from its U.S. counterparts by potentially allowing direct Bitcoin subscriptions, alongside traditional fiat currency subscriptions, offering a unique investment avenue in the region.
Read Next: Coinbase's Outlook Brightens: Analysts See Positive Turn In SEC Legal Battle
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.