Janus Henderson submits the first Bitcoin spot ETF application in Hong Kong; multiple institutions plan to participate in stablecoin "sandbox"

After a series of Bitcoin spot ETFs were listed in the United States, the possibility of launching such products in Hong Kong has attracted attention. It has been reported that Harvest Fund Management’s Hong Kong subsidiary has submitted an application for a Bitcoin spot ETF to the Hong Kong Securities and Futures Commission. In addition, as the regulatory authority in Hong Kong is accelerating the development of regulations related to stablecoins, it is rumored that several institutions are discussing the planned stablecoin trials with the Hong Kong Monetary Authority.

Harvest Fund Management’s Hong Kong subsidiary, last Friday (26th), submitted an application for a Bitcoin spot ETF to the Hong Kong Securities and Futures Commission, making it the first institution in Hong Kong to submit such an ETF application. Harvest Fund Management has stated that it has no comment on this matter.

According to reports, the Securities and Futures Commission hopes to expedite the approval process for the first Bitcoin spot ETF in Hong Kong, 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 adopt a similar approach to the United States, where multiple institutions’ applications are approved at once. Currently, apart from Harvest Fund Management, no other institutions have submitted applications.

Regulatory Sandbox for Stablecoin Trials

According to Bloomberg, Hong Kong is working hard to launch regulations related to stablecoins as soon as this quarter, which has attracted the interest of several companies, including Harvest Global Investments Ltd., RD Technologies, and Venture Smart Financial Holdings Ltd. (VSFG).

Insiders revealed that Harvest Global Investments Ltd., RD Technologies, and VSFG are in discussions with the Hong Kong Monetary Authority (HKMA) regarding the planned stablecoin trials, which are referred to as a regulatory sandbox.

The HKMA and the Financial Services and the Treasury Bureau (FSTB) began consulting on stablecoin rules last month and stated that the regulatory sandbox would help convey regulatory expectations. Insiders stated that it is currently uncertain whether the upcoming framework can be finalized before the end of March, and there is no guarantee that all institutions seeking to participate in the trials will be approved.

A spokesperson for the HKMA stated that the organization 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 comment.

VSFG stated that the regulatory sandbox is expected to commence operations in the first quarter. Rita Liu, Chief Operating Officer of RD Technologies, stated that the company plans to participate after obtaining approval from the regulatory authorities and is seeking to launch HKDR stablecoin for cross-border payments between enterprises.

Sean Lee, Senior Advisor and Head of Stablecoins at VSFG, stated that considering Hong Kong’s developed financial industry, a token pegged to the Hong Kong dollar can become a “strong alternative” to the US dollar stablecoin.

Related reports: “Bloomberg: VSFG Seeks to Launch Bitcoin Spot ETF in Hong Kong in the First Quarter of This Year” and “Hong Kong’s Securities and Futures Commission and HKMA Issue Joint Announcement: Ready to Accept Applications for Virtual Asset Spot ETFs.”

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