Analysts at Bloomberg have released revamped proposals for Bitcoin and Ethereum ETFs in Hong Kong. They estimate the size of these Asset Under Management (AUM) flows could be no less than $1 billion in the next two years.
This is a significant increase from the previous prediction of $500 million, which was made by Eric Balchunas, a senior ETF analyst at Bloomberg.
Balchunas later shared on Twitter some of the key challenges that may be faced by investors in the region. China has stringent rules on crypto that make it rather challenging for mainland participants to take part accordingly.
The milestone achievement of $1 billion in AUM will depend on upgrades to Hong Kong’s financial infrastructure, particularly with regards to crypto assets. Currently, the total AUM of Bitcoin ETFs in the region amounts to $250 million for the ETFs that have been launched.
This move has also led major firms, like ChinaAMC, to launch spot ETFs, which is expected to trigger significant growth in Hong Kong’s crypto ETF market.
Also Read: Worldcoin Announces Launch of World Chain to Boost Efficiency
