Hong Kong’s newly introduced spot exchange-traded funds (ETFs) have captured the attention of most Chinese RMB investors. According to industry experts, ETFs now serve as alternative investment products for Chinese investors to diversify their crypto portfolio.
Three ETF issuers launched their spot Bitcoin and Ether ETF products in Hong Kong on Tuesday, April 30.
Hong Kong ETFs Bring New Opportunity for Mainland Chinese Investors
During an interview with Bloomberg TV, the CEO of China Asset Management, Yimei Li, discussed the great possibilities of the newly launched spot BTC and ETH ETFs in Hong Kong.
According to Li, these crypto products are a form of attractive point for many mainland Chinese investors. Li mentioned that the products have opened the door for more investors who seek alternative investment portfolios.
Further, CEO Li disclosed her belief in a future where a majority of mainland Chinese investors will participate in the ETF market. According to her, the launch of the ETF products opens a new opportunity for the process.
Additionally, the CEO elaborated on the potential growth of asset options for local investors. Such expansion will continue as the digital asset market becomes more accessible.
Li stated:
“As the opening up progresses, we definitely hope that multi-assets will be available for domestic investors.”
As of April 30, three ETF issuers rolled out their spot ETF products on the Hong Kong Stock Exchange. These include China Asset Management, Harvest Global Investments, and Bosera Asset Management under the tickers CAM, HGI, and BOS, respectively. The region’s financial regulators approved the ETFs last week.
https://t.co/Q54R9Tsshg#Bitcoin Spot ETF Starts Trading In #HongKong, Foreigners Also Can Trade
— Bitcoinik (@Bitcoinikdotcom) April 30, 2024
Currently, crypto trading is still banned in mainland China. However, Hong Kong residents have trading access to the newly-launched ETFs.
Chinese Regulators To Maintain Close Watch On Hong Kong’s New ETFs
After Hong Kong’s ETFs launch, Chinese regulators are expected to monitor their development closely. Harvest Global CEO Han Tongli revealed in another interview with Bloomberg TV that the regulators will control the market risk.
Tongli noted that the market will expand gradually with increased investors’ confidence in adequate risk management. Besides Tongli, Jan3 CEO and Bitcoin pioneer Samson Mow also expressed his excitement about the new spot ETFs.
Samson stated, “Bitcoin ETFs in HK are going to be big. Maybe not on day 1 or 2, but the long-term implications are massive. There is really nothing else for Chinese investors to put their money into at this time.”
Interestingly, a CNBC report indicated the performance of the spot ETFs after launch. According to the report, the spot BTC ETFs by the three issuers rose by 3% higher in early trading. Later, the products lost some gains to trade by about 1.5% higher.
On the other hand, the three ETH ETFs traded above 1% during early trading hours. However, they slipped to the negative threshold late in the afternoon. With these crypto products now available in Hong Kong, their demand rate will likely increase within the region.
