Value Partners, a publicly traded business in Hong Kong, intends to apply for cryptocurrency-related ETFs and issue blockchain tokens backed by real gold.
According to local media Hong Kong Commercial Daily, the company intends to tokenize its three tonnes of gold bars, which are currently valued at an estimated $201 million.
Value Partners thinks that using blockchain technology to digitize its precious metal will only make it more accessible for investors. Value Partners now offers the only Hong Kong gold ETF that is backed by actual gold.
The action was taken in December 2023, when gold peaked and traded at $2,150 on certain platforms. According to TradingView statistics, gold increased by almost 14%.
Value Partners also revealed its plan to enter the cryptocurrency space. The Hong Kong asset manager is thinking of launching a number of exchange-traded products that use virtual currencies.
According to Zhao Shande, senior strategist of Value Partners’ ETF business, Hong Kong’s recent adoption of digital asset ETFs and its legal framework for cryptocurrencies will encourage market players and draw billions of dollars in retail capital.
The growing interest in cryptocurrency exchange-traded funds (ETFs) has led Hong Kong’s Securities and Futures Commission (SFC) and Monetary Authority (HKMA) to indicate that they are prepared to evaluate these investment products, as reported.
In contrast to the US Securities and Exchange Commission (SEC), which allegedly only supports in-cash arrangements, financial watchdogs in Hong Kong authorized both in-cash and in-kind subscriptions.
The regulators released guidelines to monitor businesses listing Bitcoin ETFs and other digital asset funds. Stablecoin regulations were also issued by Hong Kong authorities, enabling retail investments. Issuers must apply for a special license under the regulation; nevertheless, the details about algorithmic stablecoins were not made public.
