A spot cryptocurrency exchange-traded fund launched on the Hong Kong stock market has opened the door for a future wave of Chinese investors, according to industry experts.
The launch of spot Bitcoin and Ethereum ETFs on Tuesday “opens the door for many yuan holders” seeking alternative investments, China Asset Management CEO Yimei Li said in an interview with Bloomberg TV. .
China Asset Management is one of three ETF issuers, including Harvest Global Investments and Bosera Asset Management, that launched cryptocurrency products on the Hong Kong Stock Exchange on April 30.
Mr. Li told Bloomberg TV that he hoped there would be “new opportunities” for mainland Chinese investors to “participate in this process” in the future.
“As opening up progresses, we hope that domestic investors will be able to use multi-asset.”
Cryptocurrency trading remains banned in mainland China and the new ETF is currently only available to Hong Kong residents.
Harvest Global CEO Han Tongli said regulators would closely monitor how Hong Kong’s new ETP develops, adding: “They want to contain the risk. “As long as they take risks, I think the market will open gradually.”
Samson Mow, Jan3 CEO and Bitcoin pioneer said In a post on April 30,
“Currently, there is no other way for Chinese investors to invest their money.”
This comment came in response to a post by Bitcoin environmental activist Daniel Batten. observed Last year, all three Chinese stock exchanges fell, and the real estate market is still in turmoil.
Last week, Barron’s reported that all major real estate data indicators in China were weak or worse in the first quarter.
He added that most Chinese ultra-high net worth individuals can invest in Hong Kong’s cryptocurrency ETFs.
Related: Hong Kong ETF trading begins, issuer unfazed when US declares ETH a security
China Asset Management’s Zhu Haokang confirmed at a press conference on April 29 that mainland Chinese investors are currently not permitted to invest in Hong Kong’s new ETF.
“Eligible investors in Hong Kong, institutional investors, retail investors and international investors who meet the regulations can all invest in cryptocurrency spot ETFs,” he added.
There is hope among fund issuers and investors that this could be the start of a new influx of capital from the mainland at some stage in the future.
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