Hong Kong approves Bitcoin and Ether ETFs to be officially listed on April 30.

Since the United States approved the Bitcoin Spot ETF on January 10, Hong Kong has also seen significant progress. On April 24, a certain fund company announced that its Bitcoin ETF and Ether ETF have been approved by the Hong Kong Securities and Futures Commission and will be issued on April 29, with listing on the Hong Kong Stock Exchange on April 30. This marks Hong Kong as another region after the United States to approve such products, allowing ordinary investors to participate in digital asset investments through ETFs.

The Hong Kong subsidiary of the fund company has added digital asset management business on the basis of traditional asset management business, becoming the first approved institution among the leading fund companies' Hong Kong subsidiaries in China. Through an exclusive interview with the company's digital asset management director and family wealth management director, we will learn about the latest developments in the digital asset field in Hong Kong.

Since the Hong Kong government issued relevant policy declarations on October 31, 2022, Hong Kong has been committed to becoming a global hub for Web 3.0. In March of this year, the Hong Kong Monetary Authority launched three innovative sandbox projects, covering the second phase of pilot programs for wholesale central bank digital currency, stablecoins, and digital Hong Kong dollars. The upcoming Bitcoin and Ether Spot ETFs also reflect the Hong Kong government's support for compliance and development of the crypto asset ecosystem. The fund company keeps pace with the times, actively researching the crypto asset industry, especially innovations in the tokenization of real-world assets and Bitcoin/Ether Spot ETF products, and participating in the Monetary Authority's experimental sandbox. As Web 3.0 technology gains recognition in financial innovation, digital assets have become indispensable in the market, and the potential for the development of Hong Kong's digital asset industry is immense.

Compared to the United States, the approach taken by Hong Kong regulators has significant differences and advantages. Hong Kong allows cash and physical subscriptions, and participating traders can directly use Bitcoin or Ether to subscribe to or redeem shares of the ETF, while in the United States, only cash is allowed. Although the current market size of the Spot Bitcoin ETF in the United States is larger, Hong Kong, as one of the first regions to approve the Spot Ether ETF and allow retail participation, may have more advantages.

The regulatory and licensing framework implemented in Hong Kong emphasizes strict compliance with anti-money laundering and know your customer as well as know your token standards. These regulations impose stringent obligations on all market participants to prevent illegal financial activities. In contrast, the regulatory oversight of cryptocurrency trading platforms and custodians in the United States is not complete.

Qualified investors, institutional investors, retail investors, and compliant international investors in Hong Kong can invest in cryptocurrency ETFs. Currently, investors from mainland China are not permitted to invest in cryptocurrency ETFs in Hong Kong. Specific investor qualifications can be consulted with brokers and sales channels, and attention should be paid to possible regulatory adjustments in the future.

Digital asset investment can be analyzed from three perspectives: risk defense, portfolio diversification, and investment decision-making. Bitcoin, as a decentralized digital currency, performs well during times of risk aversion. In the long term, Bitcoin has a low correlation with traditional assets, which helps in portfolio diversification. However, as an emerging asset, the speculative nature and short-term volatility of Bitcoin complicate investment decision-making.

Any investment carries risks, and digital assets are no exception. When investing in digital assets or related products such as ETFs, investors should consider their own investment goals, risk tolerance, and market volatility. The high volatility of the cryptocurrency market means that high risks coexist with high returns.

The fund company has strong ETF management capabilities and market position in both China and Hong Kong. In Hong Kong, they manage several of the largest global or Hong Kong ETF products. The team has rich international experience and stable partnerships, giving them significant advantages in ETF operations and management.

It has been observed that a large asset management company in the United States has seen a rapid growth in the scale of its Bitcoin Spot ETF in a short period, demonstrating the tremendous potential for traditional investors to enter the digital asset market and highlighting Hong Kong's competitive advantage in the global digital asset arena. As one of China's largest public asset management companies and the largest ETF issuance institution in China, as well as a leading Chinese fund company in Hong Kong, the company is confident about Hong Kong's future in digital asset innovation and Web3.0 development.