Bloomberg analyst Eric Balchunas assessed the prospects for spot cryptocurrency ETFs in Hong Kong.
Based on the Balchunas’ assessment, the man’s estimated assets amount to $1 billion during the initial two-year period. The ETF expert acknowledged this as a favorable sign yet emphasized that it falls significantly short of the $25 billion figure mentioned by certain analysts.
In relation to Hong Kong, there’s positive news regarding our asset evaluation which currently stands at $1 billion in the first two years. While this is a good start in my opinion, it falls significantly short of the $25 billion that some have suggested. However, the extent of infrastructure development will be a significant factor influencing this figure. Moreover, we believe that Hong Kong’s role as the ETF (Exchange Traded Fund) leader in the Asian region, as mentioned by @RebeccaSin_SK, will also contribute positively to its growth.
— Eric Balchunas (@EricBalchunas) April 17, 2024
“The extent of progress hinges significantly on infrastructure development. Moreover, we believe Hong Kong can solidify its position as the leading ETF hub in Asia with these enhancements.”
Eric Balchunas, Bloomberg analyst
Yet, the expert pointed out that mainland Chinese investors are unlikely to qualify for purchasing Hong Kong-traded Bitcoin and Ethereum spot ETFs because investing in virtual assets is banned in their territory.
Balchunas recently revised his earlier $500 million projection, explaining that his initial estimation was too hasty. Now, he considers a longer timeline for infrastructure construction in deriving this updated figure.
This week, the Securities and Futures Commission (SFC) in Hong Kong gave its approval for Boshi International, HashKey Capital, China Asset Management, and Harvest Investment to introduce Bitcoin and Ethereum spot Exchange-Traded Funds (ETFs).
Hong Kong regulators have established a clear and open regulatory framework for cryptocurrencies, making it an alluring destination for crypto initiatives. Consequently, Hong Kong has emerged as a significant hub for crypto projects within China.
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2024-04-17 19:07