The current head of digital asset management and family wealth management at Huaxia Fund (Hong Kong), Zhu Haokang, stated that by the end of 2024, the scale of the spot Bitcoin ETF in Hong Kong will be $400 million, which is significantly lower than the $105.4 billion in the United States. Hong Kong can leverage its close ties with the mainland to explore a digital asset connect mechanism, allowing qualified investors from the mainland to invest in Hong Kong's virtual asset ETFs and security tokens. The digital asset connect can draw from the Hong Kong Stock Connect model, setting an annual investment quota (e.g., 5 billion RMB) and requiring investors to meet entry thresholds through asset scale or risk assessment tests. To prevent excessive speculation, an annual investment limit (e.g., 100,000 RMB) will be set for qualified investors. An investor access threshold will be established, requiring investors to have a certain scale of financial assets (e.g., 1 million RMB) or to pass a cryptocurrency asset risk assessment test. (Hong Kong Wen Wei Po)

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