Hong Kong-based Harvest Global Investments has joined forces with Singapore’s MetaComp to revolutionize the cryptocurrency scene. The two companies have reached an agreement to introduce cryptocurrency spot exchange-traded funds (ETFs) in Singapore, and their commitment is evident in the memorandum of understanding they have signed.
MetaComp, known for its technological expertise and its platform called Camp by MetaComp, will enable investors in Singapore to invest in Harvest’s crypto ETFs. This move is expected to make a significant impact on the global ETF market and presents an opportunity for MetaComp to enhance its product offerings with top-tier financial products.
Harvest is not a newcomer to the industry, as it is one of three Chinese asset managers expanding their presence internationally, alongside Bosera Asset Management and China Asset Management. On April 30, Harvest and Bosera each launched a couple of ETFs for bitcoin and ether, with Bosera collaborating with HashKey Capital.
However, the collaboration between Harvest and MetaComp goes beyond ETF sales. They are also planning to integrate Harvest’s asset management expertise into MetaComp’s services. Additionally, MetaComp intends to enhance its digital payment token services as part of this extensive partnership.
The focus is not solely on existing customers but also on targeting new markets, particularly those interested in blending traditional and crypto finance. Bo Bai, the CEO of MetaComp, expressed the intention to bridge the gap between conventional finance and the crypto world. Leveraging Harvest’s expertise and MetaComp’s technology, the partnership aims to deliver significant value to investors.
MetaComp has obtained regulatory approval from Singapore’s Monetary Authority of Singapore, ensuring compliance with local laws and regulations. However, the collaboration extends beyond Singapore, as the cryptocurrency spot ETFs are scheduled to be traded on the Hong Kong Stock Exchange from April 30, 2024.
While the plan is ambitious and aims to generate interest and investment in cryptocurrencies, the initial response in Hong Kong was relatively subdued. Although the city launched three bitcoin ETFs and three ether ETFs, trading volumes were not as high as expected. On some days, only HK$43 million was traded for bitcoin and HK$5.5 million for ether. While these figures may seem substantial, they pale in comparison to the initial excitement surrounding the launch.
Cryptocurrency ETFs typically attract mainstream investors and contribute to price surges. However, with low trading volumes and global crypto markets experiencing volatility, the journey has been challenging. Bitcoin itself has experienced fluctuations, dropping below US$60,000 and losing value rapidly.
This trend is not exclusive to Hong Kong, as even prominent names in the industry such as Fidelity and BlackRock have witnessed significant outflows from their bitcoin ETFs in the US.
Despite the lackluster start, there are optimists who see this as just the beginning of a larger movement. While the initial phase may be rocky, the strategic partnerships and infrastructure in place suggest that brighter days may lie ahead for crypto ETFs in Asia.
