Yong Rong Asset Management, a prominent asset management firm headquartered in Hong Kong, has recently made a substantial investment in the Bitcoin Spot ETF, as confirmed by Bloomberg ETF analyst Eric Balchunas. The firm has acquired $38 million worth of the IBIT Bitcoin Spot ETF, which now constitutes 12% of its reported assets.
This move is noteworthy, especially considering that Hong Kong has its own ETFs available. However, U.S. ETFs continue to be appealing to international investors due to their combination of low fees and high trading volume.
Balchunas notes that Yong Rong's investment portfolio is diverse, with its top four holdings being Nvidia, Meta, Tesla, and Bitcoin. While Yong Rong's single investment of $30 million in the IBIT ETF is significant, another Hong Kong-based firm named Ovata holds four spot BTC ETFs with a total value of $74 million, making it the largest investor in these ETFs to date.
As of the close of trading on May 3, the total trading volume of six Hong Kong spot ETFs for virtual assets amounted to HK$48.91 million, or approximately US$6.26 million. Among them, the Bitcoin ETF had a trading volume of 43.41 million Hong Kong dollars, while the Ethereum ETF had a trading volume of 5.5 million Hong Kong dollars. In contrast, the trading volume for 11 US Bitcoin spot ETFs on May 2 was an impressive $1.72 billion.
May 2024, Cryptoniteuae