In a significant development for the cryptocurrency market in Hong Kong, Harvest Fund has officially applied to the first-ever Bitcoin (CRYPTO: BTC) spot Exchange Traded Fund (ETF) with the Hong Kong Securities and Futures Commission (SFC).
Why It Matters:
The submission of this application by Harvest Fund is a clear indicator of the growing interest and acceptance of cryptocurrencies in mainstream financial markets.
This initiative follows closely on the heels of the U.S. Securities and Exchange Commission’s approval of the first batch of Bitcoin spot ETFs just two weeks prior, a decision that has seemingly influenced the SFC’s accelerated pace in this domain.
The potential approval of this ETF in Hong Kong could significantly broaden investment opportunities and attract a wider range of investors, including family offices that have previously been hesitant to directly engage in the Bitcoin market due to its complexity and perceived risks.
According to Anndy Lian, an intergovernmental blockchain advisor, the Chinese stock market was one of the worst performers globally in 2023, funds looking for crypto alternatives are a big plus for the crypto industry.
“Harvest Fund ranked China’s sixth-largest public fund manager. Having them filing for Bitcoin ETF would mean more Chinese money flowing into the ecosystem. This could be a start of seeing a rise in Bitcoin or Crypto Exchange-Traded Products (ETPs) too,” he says.
Read Also: Unlocking Crypto Riches: Crypto Expert Shares Guide How To Value Tokens
What’s Next:
The SFC is reportedly eager to expedite the approval process for Hong Kong’s first spot Bitcoin ETF, with plans to list it on the Hong Kong Stock Exchange shortly after the Chinese New Year.
This development could pave the way for multiple institutions to enter the market, mirroring the approach taken in the U.S., where firms like Grayscale, BlackRock Inc. (NYSE:BLK), and Fidelity rapidly grew their ETFs’ sizes.
However, as of now, Harvest Fund remains the only institution to have applied, despite interest from others. Additionally, Hong Kong’s ETF might distinguish itself from its U.S. counterparts by potentially allowing direct Bitcoin subscriptions, alongside traditional fiat currency subscriptions, offering a unique investment avenue in the region.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
Investors were initially curious about Spot Ethereum Exchange Traded Funds (ETFs). However, after the approval ofBitcoin ETFs, these have now captured their full attention.
Benzinga gathered exclusive commentary from several experts to gauge the prospects for a spot Ethereum ETF approval this summer.
What Is The Current Status Of Spot Ethereum ETFs?
Tom Staudt, president and COO of ARK Invest, recently expressed confidence in the progression of Ethereum ETFs.
He cited the maturing dialogue with regulators and the sophistication of conversations surrounding the ETF, saying, “This is not the same place where we were on the timeline with Bitcoin at this stage.”
Staudt notes that potential issuers now possess greater legal, operational, and philosophical expertise, partly due to the successful approval of spot Bitcoin ETFs.
But skeptics warn of regulatory roadblocks and lingering doubts about Ethereum’s classification as a security. At the heart of the debate lies, once again, the Securities and Exchange Commission.
Will The SEC Play Ball?
Anndy Lian, an intergovernmental blockchain advisor, tells Benzinga that the SEC should act in the “best interest of the public and the crypto industry” by making a “timely and positive decision” on Spot ETH ETFs.
His comments highlight the widespread anticipation surrounding the potential ETF’s arrival, with both retail investors and institutional giants eager to gain exposure to the world’s second-largest cryptocurrency.
But the SEC had to be “dragged kicking and screaming” to approve one spot cryptocurrency ETF, he adds, and there is no guarantee a second one would be any easier.
Ethereum ETFs Could Spur “Full-Scale, Global Adoption”
The case for Ethereum is simple, according to Stijn Paumen, the founder of Helio.
He paints a vivid picture of a future transformed by Ethereum’s mainstream adoption. The ETF approval would be a catalyst for “full-scale, global adoption of cryptocurrency.”
Everyday purchases, from your morning coffee to online shopping sprees, could be made with a simple tap of your crypto wallet.
His infectious enthusiasm captures the transformative potential of blockchain technology and its ability to disrupt traditional financial systems.
Even Bitcoiners Think It’s Coming
Terrence Yang, managing director at Swan Bitcoin, acknowledges the inevitability of an ETH ETF, albeit somewhat grudgingly.
He concedes that legal precedents and the SEC’s recent Bitcoin approvals have tilted the scales in favor of Ethereum.
Indeed, as Decrypt reported, analysts agree that Bitcoin’s approval has set a precedent: Grayscale argued in court – and won – that the SEC could not approve a futures ETF and reject a spot ETF. Since futures Ethereum ETFs have already been approved, logic holds that a spot ETF would have to follow – as it did for Bitcoin.
So…When Ethereum ETF?
Chris Martin, head of research at Amberdata, a crypto data analytics firm, says an Ethereum ETF should come sooner rather than later.
Issuers will face two major challenges at the SEC:
The SEC doesn’t have the public pressure it did for the Bitcoin ETF which means, they can take their time and don’t have to worry about passing all of the issuers at once
The SEC is still pushing the security vs commodity stance without any clarity.
“Approving an Ethereum ETF may impact their current cases against Coinbase Inc and Binance, and may push them closer to defining their stance on cryptocurrencies,” he says.
Prediction markets agree, with Polymarket rating the probability of an approval by May 31 only at 54%.
Should the SEC grant its blessing, the implications for the financial landscape could be profound. Mass adoption may come a step closer after all.
What is the current status of Spot Ethereum ETFs, and how does it compare to the timeline of Bitcoin ETFs?
According to Tom Staudt, president and COO of ARK Invest, there is growing confidence in the progression of Ethereum ETFs. Staudt points to a maturing dialogue with regulators and increased expertise among potential issuers, influenced by the successful approval of spot Bitcoin ETFs. However, skeptics highlight potential regulatory roadblocks and uncertainties about Ethereum's classification.
How does Anndy Lian, an intergovernmental blockchain advisor, view the SEC's role in the approval of Spot ETH ETFs?
How do Bitcoiners, represented by Terrence Yang, view the inevitability of an ETH ETF?
Terrence Yang, managing director at Swan Bitcoin, acknowledges the inevitability of an ETH ETF, influenced by legal precedents and the SEC's recent approvals for Bitcoin. Despite some reluctance, Yang concedes that the scales are tilting in favor of Ethereum, especially considering the precedent set by Grayscale's court argument and victory.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
The metaverse is made up of virtual worlds where people can do many things they do in real life. To paraphrase Meta CEO Mark Zuckerberg, it’s an “embodied internet”, where instead of just viewing content “you are in it”. And cryptocurrency will almost certainly become the primary payment method in the metaverse.
UK-based blockchain VC company Outlier Ventures confirmed: “The defining characteristic of a true Metaverse is that it needs its own economy and currencies native to it, where value can be earnt, spent, lent, borrowed or invested interchangeably in both a physical or virtual sense and most importantly without the need for a government.”
As a result, I recommend that you research metaverse and its related technologies before making any key investments.
What is the metaverse?
Metaverses are inter-connected virtual worlds where people can do things they can’t do in real life, such as work, entertainment, shopping, fitness, and socializing. In a virtual environment, people can start their businesses, buy land, create artwork, and attend concerts. Metaverses create spaces for people to kill time by utilizing virtual reality, augmented reality, social media, and blockchain technology including NFTs. Although the development of the metaverse is still in its infancy, in simple terms it’s easy to see that it will eventually become a virtual world with a virtual economic system.
In the future, users may purchase clothing for their virtual characters rather than clothing for their real-life wardrobe. Rather than buying a piece of art to hang on the wall, it is preferable to purchase digital art to display in a virtual gallery.
The relationship between cryptocurrency and the metaverse
Cross-platform currency is a critical link in the virtual economic system. The emergence of cryptocurrency is as if it were tailor-made for the virtual world. It enables users to use cryptocurrency in metaverses in similar ways they would use cash in real life. Furthermore, transactions in metaverses are almost instantaneous, thanks to the blockchain technology underlying them, which aims to establish a trust mechanism for both parties to the transaction and ensure the transaction process’s safety.
In explaining the attraction of programmable crypto to metaverse developers expert Matthew Ball explained: “Most important is the fact that developers and users can invest their time and capital with confidence that a blockchain’s policies, incentives, or economics won’t change arbitrarily over time.”
Camilo Echeverri, Co-Founder of MGH DAO mentioned “Seeing all these developments of play-to-earn and metaverses is really motivating because Web3 is going to change everything, especially in the way we interact on the Internet.”
When asked what is metaverse to him. His answer was “The metaverse is a place on the Internet where you can watch your favourite movies, play your favourite games, listen to your favourite artist, and do everything you like with your friends and family.
Consider Decentraland, a decentralized 3D virtual reality platform. Users who want to buy items on the platform must use the platform’s token MANA as the transaction currency. Indeed, metaverse cryptocurrencies such as MANA, Sandbox (SAND), and Enjin (ENJ) have recently received a lot of attention. The popularity of various pet meme coins has also increased due to the popularity of metaverse’s cryptocurrency. Led by Dogecoin, especially in the US, and with celebrity backing from billionaire entrepreneurs Elon Musk and Mark Cuban, it’s not difficult to see the advantages of its payment-friendly features in terms of low fees and infinite supply for online communities and marketplaces.
Borget Sebastien, Co-Founder and COO, The Sandbox was also invited as a speaker at a Twitter Spaces session on metaverse said. “Imagine the metaverse as a digital parallel world where we can experience more social and immersive interactions from wherever we are in the world. We can choose our identity, play, collaborate, enjoy entertainment, and earn revenue. It will be fun and borderless.”
How to start participating in the metaverse
The metaverse is a concept that is still in its infancy. At the moment, there are many different ideas about how metaverses will look and what role they can play in our lives, both at work and at home. Meta (formerly Facebook) has ambitious plans for its future development as the pioneer of metaverses technology such as VR headsets. The plan calls for the introduction of virtual fitness equipment and space for virtual business meetings. And although VR technology has advanced significantly, there are still numerous technical issues that must be addressed before it reaches mass adoption.
However, we can participate in the metaverse today in a variety of ways as cryptocurrency investors. The simplest way to get started is to buy existing metaverse-related cryptocurrencies. These cryptocurrencies are available from major cryptocurrency exchanges. Simultaneously, you can purchase NFTs or even consider purchasing real estate and artwork in the metaverses world. However, I advise that if you want to join the metaverse, you should do a lot of research. Access to what’s happening in the existing metaverse, such as playing the online game Fortnite, is a good way to comprehend its potential and to start thinking about the expected value of your investments.
Do not join the metaverse based solely on celebrity endorsement and the current media hype, as you might with any other crypto investments. It is critical to devote as much time and effort as possible to understand how they work and which metaverse projects are most likely to survive and prosper in the long run. Similarly, buying NFTs at random simply because of the hype is not a reasonable investment strategy.
Before purchasing NFTs, you should investigate which NFTs are appropriate for your interests, which ones are likely to be profitable, and do the research to ensure a good experience in buying NFTs.
It should be noted that mature blockchain network projects should be chosen for investment as much as possible. Many metaverse projects that use crypto or blockchain technology are built on established ecosystems like Ethereum (ETH) or Solana (SOL), which will therefore benefit investors, and offer a lower-risk investment option. Because even if the more ambitious elements of an always-on metaverse are not realized, Ethereum or Solana will likely continue to prosper.
Anndy Lian, Chairman, BigONE Exchangecommented too that “The economy is growing in metaverses. Cryptocurrency is playing a very big part in this whole development. A lot of governments do not have a good way to regulate De-Fi products. If we’re going to add DAO or metaverse to the scenario, it will take them a long time to catch up. We have to exercise self-regulation and constantly communicate with regulators to provide updates on the progress in the space, in order to minimise misconceptions of the crypto world.”
We don’t know how the metaverse will evolve in the future. People have been discussing how to develop it for many years, and the term ‘metaverse’ is decades old, but progress until very recently has been slow on creating these persistent virtual worlds. Although there may be changes this time around, it is critical not to invest based solely on hype.
All cryptocurrency investments are risky, and you should only invest funds that you can afford to lose money. Don’t let the fear of missing out (FOMO) drive your investments. If the metaverse is a worthwhile investment project, it will be worth waiting to invest in once your research is completed. As a result, I remind all investors to choose investment projects with caution and not rush into a decision.
Metaverses are inter-connected virtual worlds where people can do things they can’t do in real life, such as work, entertainment, shopping, fitness, and socializing. In a virtual environment, people can start their businesses, buy land, create artwork, and attend concerts. Metaverses create spaces for people to kill time by utilizing virtual reality, augmented reality, social media, and blockchain technology including NFTs.
What is the relationship between cryptocurrency and the metaverse?
Cross-platform currency is a critical link in the virtual economic system. The emergence of cryptocurrency is as if it were tailor-made for the virtual world. It enables users to use cryptocurrency in metaverses in similar ways they would use cash in real life. Furthermore, transactions in metaverses are almost instantaneous, thanks to the blockchain technology underlying them, which aims to establish a trust mechanism for both parties to the transaction and ensure the transaction process’s safety
How to start participating in the metaverse?
We can participate in the metaverse today in a variety of ways as cryptocurrency investors. The simplest way to get started is to buy existing metaverse-related cryptocurrencies. These cryptocurrencies are available from major cryptocurrency exchanges. Simultaneously, you can purchase NFTs or even consider purchasing real estate and artwork in the metaverses world.
What is Anndy Lian's view on metaverse now?
The economy is growing in metaverses. Cryptocurrency is playing a very big part in this whole development. A lot of governments do not have a good way to regulate De-Fi products. If we’re going to add DAO or metaverse to the scenario, it will take them a long time to catch up. We have to exercise self-regulation and constantly communicate with regulators to provide updates on the progress in the space, in order to minimise misconceptions of the crypto world.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
