Hong Kong cryptocurrency exchange-traded funds (ETFs) set to attract mainland Chinese investors with new opportunities.

In an interview with Bloomberg TV, Yimei Li, CEO of China Asset Management, discussed the recent launch of spot Bitcoin and Ether ETFs in Hong Kong. She emphasized that this development provides an alternative investment option for RMB holders and envisions increased accessibility for domestic investors as market conditions improve. China Asset Management is one of three ETF issuers, alongside Harvest Global Investments and Bosera Asset Management, that introduced cryptocurrency products on the Hong Kong Stock Exchange on April 30. Han Tongli, CEO of Harvest Global, noted that regulators are closely monitoring the ETFs to manage potential risks and may consider market expansion based on risk assessments.

Bitcoin pioneer Samson Mow expressed optimism about the significance of ETFs in Hong Kong, particularly for Chinese investors, as he highlighted the limited investment options available to them at present. Daniel Batten, a Bitcoin environmentalist, pointed out the decline of Chinese stock exchanges in 2023 and the ongoing instability in the real estate market. He mentioned that Hong Kong’s cryptocurrency ETFs are accessible to Chinese ultra-high-net-worth individuals and various categories of investors who meet the regulations, anticipating a new wave of capital inflows from the mainland in the future. Despite the upcoming launch of the Hong Kong crypto spot ETF, the overall crypto markets experienced a downturn, with Bitcoin (BTC) hovering above $63,000.

BTC fell from its weekend peak but recovered to approximately $63,000 in the US afternoon, experiencing a 1% decrease in the last 24 hours, outperforming the global crypto market, which fell 2% during the same period. The upcoming launch of spot-based Bitcoin and Ether ETFs in Hong Kong did not match the level of excitement seen for the U.S. spot Bitcoin ETFs. Additionally, there was confidence expressed that the initial listing scale of Hong Kong’s virtual asset spot ETF could exceed the issuance scale on the first day of the United States.

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