Hong Kong has opened up new opportunities for cryptocurrency trading as Tiger Brokers, a Nasdaq-listed company, introduces cryptocurrency support on its Tiger Trade app. Professional investors can now access 18 cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), in addition to stocks, options, futures, and other global assets. Tiger Brokers partnered with HashKey Exchange to offer this service to professional investors in Hong Kong, who must have a portfolio valued above 8 million Hong Kong dollars ($1 million) or be corporate entities with assets exceeding 40 million Hong Kong dollars ($5 million). The company plans to expand its cryptocurrency trading services to retail investors pending regulatory approval and is also considering adding cryptocurrency spot withdrawals and deposits.
Investors can also gain exposure to cryptocurrencies through Bitcoin spot exchange-traded funds (ETFs) available on the platform. Tiger Brokers offers trading of U.S.-listed Bitcoin ETFs, as well as recently launched Hong Kong spot Bitcoin and Ether ETFs. These ETFs provide another avenue for investors to access cryptocurrencies, although their success has varied since their respective launches in the U.S. and Hong Kong. While Hong Kong’s spot Bitcoin and Ether ETFs attracted over $200 million in total assets on their debut, the U.S. Bitcoin ETFs recorded a trading volume of $4.6 billion in January 2024, far surpassing the Hong Kong ETFs’ first-day trading volumes of $12 million.
There are also speculations that mainland China may gain access to Hong Kong’s Bitcoin and Ether ETFs through the Shenzhen-Hong Kong Stock Connect, a cross-border investment infrastructure that connects the Shenzhen Stock Exchange and the Hong Kong Stock Exchange. Industry experts in Asia have suggested this possibility. The Hong Kong-based crypto ETFs have continued to increase their assets under management, with the Bosera HashKey spot Bitcoin and Ether ETFs accumulating 964 Bitcoin, totaling $71.94 million in assets. Additionally, ChinaAMC’s spot Bitcoin and Ether ETFs have amassed $123.61 million in combined assets as of April 30.
In summary, Hong Kong’s Tiger Brokers has launched cryptocurrency support on its Tiger Trade app, allowing professional investors to trade 18 cryptocurrencies. The company plans to expand this service to retail investors pending regulatory approval. Additionally, investors can access Bitcoin spot ETFs through the platform, and there are possibilities for mainland China to gain access to Hong Kong’s crypto ETFs.