The introduction of spot crypto exchange-traded funds (ETFs) on the Hong Kong Stock Exchange has paved the way for a future wave of Chinese investors, industry experts say.
In an interview with Bloomberg TV, China Asset Management CEO Yimei Li said Tuesday's launch of Spot Bitcoin and Ether ETFs “opens the door to a large number of RMB It will become.” [Chinese yuan] Holder” is looking for alternative investments.
China Asset Management is one of three ETF issuers, along with Harvest Global Investments and Vocera Asset Management, to introduce crypto products to the Hong Kong Stock Exchange on April 30.
Li told Bloomberg TV that he believes there will be “new opportunities” in the future for mainland Chinese investors to “participate in this process.”
He highlighted that asset options could expand for domestic investors as market access improves.
Cryptocurrency trading is still prohibited in mainland China, and the new ETF was only available to Hong Kong residents at the time.
Harvest Global CEO Han Tongli said regulators are closely monitoring the development of these ETFs to manage potential risks and will consider market expansion based on risk assessment. He said it was possible.
On April 30th post on X, January 3, CEO and Bitcoin pioneer Samson Mo said Hong Kong ETFs “are going to be big,” adding that “the long-term impact will be It's very big.”
“There is nothing else that Chinese investors can put their money into at the moment.”
The comments follow a post by Bitcoin environmental activist Daniel Batten, who pointed out that all three of China's stock exchanges will decline in 2023, and the real estate market will continue to be unstable.
According to a Barron's report last week, all major Chinese real estate data indicators were weak or fell in the first quarter.
Most of China's ultra-high-net-worth individuals can invest in Hong Kong's crypto ETFs, he said.
China Asset Management's Zhu Haokang confirmed in a press conference on April 29 that mainland Chinese investors are currently prohibited from investing in the new Hong Kong ETF.
“All Hong Kong accredited investors, institutional investors, retail investors and international investors who meet the regulations can invest in crypto spot ETFs,” he said.
Fund issuers and investors expect this to trigger a new wave of capital inflows from the mainland in the future.
Despite the impending debut of Hong Kong's crypto spot exchange-traded fund (ETF), Bitcoin (BTC) fell as crypto markets across the board fell on Tuesday morning and investor excitement remained muted. It has remained above $63,000.
BTC fell during the day from $64,000 at the weekend and briefly fell to $61,800 before recovering to around $63,000 by afternoon in the US.
The largest cryptocurrency by market capitalization recently turned around, down about 1% to $61,714 in the past 24 hours, outpacing the global crypto market, which fell 2% in the same period.
Most of the altcoin majors also lost their weekend gains, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) falling from 4% to 6%.
Hong Kong's spot-based Bitcoin and Ether ETF will begin trading on Tuesday morning local time, but the upcoming launch has not generated as much excitement as the US spot Bitcoin ETF. In particular, BTC's price nearly doubled in the three months leading up to its debut on January 11th, with massive inflows pushing BTC above $73,000 in March.
Ignoring subdued expectations, executives at China AMC, one of the three issuers of the new Hong Kong-listed spot ETF, said at a press conference that the first-day stock sales amounted to more than the U.S. He said it could surpass its debut gross of $125 million. Alluding to initial funding for new products.
“We are very confident that the scale of new listings of crypto asset spot ETFs in Hong Kong has the potential to exceed the issuance scale on the first day in the US,” said Zhu Haokang.
