The Hong Kong arm of Harvest Fund Management, Harvest Global, is considering a strategic move to bring cryptocurrency spot ETFs within reach of mainland Chinese investors through the Stock Connect program. According to a report by the South China Morning Post, Harvest Global CEO Han Tongli indicated during his appearance at the Bitcoin Asia conference that the firm is open to applying for inclusion of its crypto-native ETFs into the cross-border investment channel—provided market and regulatory conditions develop favorably over the next two years.
This potential development could mark a pivotal moment for digital asset adoption in Asia, bridging one of the world’s largest pools of retail capital with regulated crypto investment vehicles.
Understanding ETF Connect and Stock Connect
ETF Connect, launched in May 2022, expanded the scope of the existing Stock Connect framework—first introduced in 2014 to link the Shanghai and Hong Kong stock exchanges. The initiative allows mainland Chinese investors to access a curated selection of ETFs listed on the Hong Kong Stock Exchange, enhancing diversification opportunities while maintaining capital controls.
Currently, only traditional asset-backed ETFs are included. However, if crypto spot ETFs like those holding Bitcoin or Ether were to be integrated into this system, it would represent a significant regulatory and financial milestone.
The Rise of Hong Kong’s Crypto Spot ETFs
Hong Kong welcomed its first wave of spot Bitcoin and Ether ETFs on April 30, with major asset managers including CSOP Asset Management (Hong Kong), Harvest Global, and Bosera Funds (International) in partnership with HashKey leading the charge. On their debut trading day, these ETFs recorded over $11 million in trading volume, signaling strong initial market interest.
These products offer investors indirect exposure to cryptocurrencies without the complexities of self-custody or navigating unregulated exchanges. With professional fund management, custodial security, and full compliance with Hong Kong’s Securities and Futures Commission (SFC) standards, they represent a trusted gateway for institutional and retail investors alike.
Despite this progress, access remains limited primarily to Hong Kong-based and international investors. Mainland Chinese investors—historically active in digital asset markets—remain excluded due to strict domestic regulations.
Regulatory Hurdles and Market Realities
China maintains a firm stance against cryptocurrency trading and mining, citing financial stability and anti-money laundering concerns. While Hong Kong operates under the “One Country, Two Systems” principle and has developed its own pro-innovation regulatory framework for virtual assets, any expansion into mainland markets requires careful coordination with Beijing.
Notably, even Bitcoin and Ether futures ETFs launched in Hong Kong in 2022 have yet to be included in Stock Connect. This precedent suggests that regulatory approval for spot crypto ETFs may take time, despite growing demand and maturing infrastructure.
However, Han Tongli’s comments reflect a long-term vision: if the ecosystem continues to evolve with stronger investor protections, clearer tax guidelines, and improved market surveillance, the door could open for inclusion by 2026 or later.
Strategic Implications for the Crypto Market
Bringing crypto spot ETFs into Stock Connect would unlock unprecedented liquidity. Mainland China boasts one of the world’s largest bases of retail investors, many of whom have shown historical interest in alternative assets. Even limited access could drive substantial inflows into Hong Kong-listed digital asset funds.
Moreover, such a move would reinforce Hong Kong’s position as a global hub for fintech and digital finance innovation. It would also signal growing acceptance of blockchain-based financial products within broader Asian capital markets.
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Frequently Asked Questions (FAQ)
Q: What is Stock Connect?
A: Stock Connect is a cross-border investment program linking mainland China’s stock exchanges (Shanghai and Shenzhen) with the Hong Kong Stock Exchange. It enables mutual market access for approved stocks and ETFs while maintaining capital flow controls.
Q: Are crypto ETFs currently available to mainland Chinese investors?
A: No. Despite Hong Kong’s launch of spot Bitcoin and Ether ETFs, these products are not accessible to mainland investors via Stock Connect or other official channels due to China’s restrictive crypto policies.
Q: What is the difference between futures-based and spot crypto ETFs?
A: Spot crypto ETFs directly hold the underlying cryptocurrency (e.g., actual Bitcoin), while futures-based ETFs invest in derivative contracts. Spot ETFs are generally seen as more transparent and closely tracking real market prices.
Q: Why hasn’t Hong Kong included crypto ETFs in ETF Connect yet?
A: Regulatory caution remains high. Although Hong Kong regulates crypto platforms and funds, integration with mainland systems requires alignment with central government financial policy, which currently prioritizes stability over innovation in this domain.
Q: Could this change in the future?
A: Yes—gradually. If market infrastructure strengthens and regulators observe successful operations without systemic risks, inclusion could become feasible within a few years, especially if demand from institutional investors grows.
Q: What role does Harvest Global play in this space?
A: As one of the early issuers of spot crypto ETFs in Hong Kong, Harvest Global is positioning itself at the forefront of bridging traditional finance with digital assets. Its exploration of Stock Connect access highlights a strategic push toward broader market reach.
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Conclusion
While immediate inclusion of crypto spot ETFs in Stock Connect remains unlikely, Harvest Global’s forward-looking stance underscores a growing confidence in Hong Kong’s digital asset ecosystem. With continued regulatory clarity, technological maturity, and investor education, the path toward connecting mainland capital with blockchain-based financial products is slowly taking shape.
For now, all eyes remain on how quickly the region can build trust—not just among investors, but with policymakers who ultimately hold the keys to broader market integration. The next two years will be critical in determining whether this vision becomes reality.