Harvest Global Investments Pursues Spot-Bitcoin ETF and Stablecoin Sandbox in Hong Kong

January 31, 2024

By Sharan Kaur Phillora

Harvest Global Investments, a prominent asset management company in China, has reportedly applied to a spot-bitcoin exchange-traded fund (ETF) with Hong Kong’s Securities and Futures Commission (SFC). Additionally, reports suggest that the company is engaged in discussions with regulators regarding Hong Kong’s stablecoin sandbox initiative.

Here’s what we know:

While Harvest Global Investments has not issued an official statement in response to these reports, the SFC declined to comment on the matter.

The move comes in the wake of a significant development in December 2023 when Hong Kong regulators signaled their readiness to consider applications for spot crypto ETFs. This decision followed the approval of nearly a dozen spot-bitcoin ETF applicants in the United States.

Another Hong Kong-based firm, Venture Smart Financial Holdings, has also expressed its intention to file an application for a spot bitcoin ETF, with hopes of commencing trading in the first quarter of this year.

Moreover, Venture Smart Financial Holdings, along with Harvest Global Investments and RD Technologies, is reportedly involved in discussions with the Hong Kong Monetary Authority (HKMA) concerning the city’s planned stablecoin sandbox.

The sandbox initiative is designed for fiat-reference stablecoin (FRS) issuers who demonstrate a genuine interest and a reasonable plan for issuing FRS in Hong Kong.

An HKMA spokesperson stated, “The HKMA is preparing for the launch of the sandbox and will announce relevant details in due course.” The HKMA, as the central bank stakeholder in the stablecoin initiatives within the region, plays a pivotal role in shaping the regulatory framework for stablecoin issuers.

Hong Kong’s regulatory authorities have already published proposals for supervising stablecoin issuers through a licensing regime. Feedback on these proposals is actively sought, with the consultation period extending until the end of February.

The pursuit of spot-bitcoin ETFs and engagement with stablecoin initiatives reflects Hong Kong’s commitment to embracing innovative digital asset offerings while ensuring a robust regulatory framework to protect investors and maintain financial stability.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

Translate Now