Analysts Predict $1 Billion in Hong Kong Crypto ETF Assets

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Bloomberg’s analysts have put forward new plans for Bitcoin and Ethereum ETFs in Hong Kong. They predict that the assets under management (AUM) for these funds could potentially reach $1 billion within the next two years.

Eric Balchunas, a senior ETF analyst at Bloomberg, previously forecasted $500 million, but now the predicted amount is notably higher.

Later on Twitter, Balchunas expressed some of the major hurdles investors in the region might encounter. Participating in crypto investments in China can be quite difficult due to strict regulations set by the Chinese government.

In terms of positive updates regarding Hong Kong, our evaluation puts the asset value at around $1 billion within the initial two years. While this is a promising figure, it falls significantly short of the $25 billion some have speculated. Nonetheless, the pace of infrastructure development will play a significant role in determining the actual worth. Furthermore, we believe that Hong Kong’s position as an ETF hub in Asia, as discussed by Rebecca Sin @RebeccaSin_SK, is an additional advantage.

— Eric Balchunas (@EricBalchunas) April 17, 2024

Reaching the significant goal of managing $1 billion in assets under management (AUM) for crypto funds in Hong Kong hinges on enhancing the financial infrastructure, specifically concerning crypto assets. At present, the combined AUM for Bitcoin ETFs in this region only adds up to $250 million for those that have been introduced.

Major companies such as ChinaAMC have followed this development by introducing spot ETFs (Exchange-Traded Funds), which could bring about substantial expansion in Hong Kong’s crypto ETF sector.

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2024-04-18 00:55