After a series of Bitcoin spot ETFs were listed in the United States, the possibility of introducing such products in Hong Kong has attracted attention. Reports suggest that Harvest Fund Management Hong Kong has submitted an application for a Bitcoin spot ETF to the Hong Kong Securities and Futures Commission. In addition, as the Hong Kong regulatory authorities are accelerating the promotion of regulations related to stablecoins, it is rumored that multiple institutions are discussing the planned stablecoin experiments with the Hong Kong Monetary Authority.
Harvest Fund Management Hong Kong Submits First Bitcoin Spot ETF Application in Hong Kong
According to Tencent News “First Line” report, Harvest Fund Management Hong Kong, a subsidiary of the Chinese asset management company Harvest Fund Management, submitted an application for a Bitcoin spot ETF to the Hong Kong Securities and Futures Commission last Friday (26th), becoming the first institution in Hong Kong to submit such an ETF application. Harvest Fund Management has not commented on this.
It is reported that the Securities and Futures Commission hopes to expedite the approval of the first Hong Kong Bitcoin spot ETF and plans to list the first spot ETF on the Hong Kong Stock Exchange after the Spring Festival. In addition, the Securities and Futures Commission may follow the U.S. practice of approving applications from multiple institutions at once. Currently, besides Harvest Fund Management, no other institutions have submitted applications.
“Regulatory Sandbox” for Stablecoin Experiments
According to Bloomberg, sources revealed that Hong Kong is striving to launch regulations related to stablecoins in the current quarter, which has attracted the interest of many companies, including Harvest Global Investments Ltd. international division.
Sources stated that Harvest Global Investments Ltd., financial technology company RD Technologies, and financial service company Venture Smart Financial Holdings Ltd. (VSFG) are in discussions with the Hong Kong Monetary Authority (HKMA) regarding the planned stablecoin experiments, which are referred to as a regulatory sandbox.
The Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau (FSTB) began consultations on stablecoin rules last month and stated that the regulatory sandbox would help convey regulatory expectations. Sources mentioned that it is currently uncertain whether the forthcoming framework can be finalized by the end of March and whether all institutions seeking to participate in the experiments will be approved.
A spokesperson for the Monetary Authority stated that the institution is preparing for the launch of the stablecoin sandbox and will announce details at an appropriate time. Harvest Global Investments did not respond to requests for comments.
Venture Smart Financial indicated that the regulatory sandbox is expected to start operating in the first quarter. Rita Liu, the Chief Operating Officer of RD Technologies, stated that the company plans to participate once approved by regulatory authorities and is seeking to launch HKDR stablecoin for cross-border payments among enterprises.
Sean Lee, Senior Advisor and Head of Stablecoins at Venture Smart Financial, expressed that given Hong Kong’s developed financial industry, tokens pegged to the Hong Kong dollar could serve as a “strong alternative” to the U.S. dollar stablecoins.