Harvest, the issuer of a spot Bitcoin exchange-traded fund (ETF) in Hong Kong, is exploring options to allow mainland China investors to access its Bitcoin and Ether ETFs. Harvest CEO and chief investment officer Han Tongli is considering making their products available to mainland Chinese investors through Hong Kong's ETF Connect framework. The ETF Connect program, launched in 2022 and approved by regulatory bodies, aims to enhance interaction between Hong Kong and mainland China, increase asset allocation choices, and boost liquidity in the market.

If the process goes smoothly in the next two years, Harvest is open to the idea of applying for its ETFs to be included in the ETF Connect. The potential inclusion of Bitcoin and Ether ETFs in the program could have a significant positive impact on cryptocurrency markets, given China's large investor base. However, it remains uncertain if the Chinese government will approve such a move, considering their historically strict stance on cryptocurrencies such as Bitcoin.

The introduction of Bitcoin and Ether ETFs in Hong Kong is a highly debated topic, with analysts sharing different views on how the market will react to such offerings, considering the smaller size of the Hong Kong ETF market compared to that of the United States and mainland China. Despite the concerns, some believe that Hong Kong's ETF capabilities could provide unique opportunities for mainland China investors.

The launch of Bitcoin and Ether ETFs on April 30, 2024, in Hong Kong raised questions about the potential market impact, especially since Hong Kong-based subsidiaries of mainland China companies hold significantly more assets in mainland China compared to the local market. The data from Bloomberg indicates that Hong Kong ETFs represent a small fraction of the U.S. ETF market, suggesting room for growth and market opportunities in the region.