Hong Kong has introduced an innovative approach to attract high-net-worth individuals through its updated "Capital Investor Entrant Scheme," now including cryptocurrency investments like Bitcoin and Ethereum spot ETFs as eligible assets. This guide explores how strategic ETF investments can serve as a gateway to obtaining Hong Kong residency.
Virtual Assets Recognized as Financial Instruments
Facing a pressing need for talent influx, Hong Kong's government revitalized its investment migration program in 2023. The revised scheme requires:
- Minimum HKD 27 million investment in approved financial assets
- Additional HKD 3 million allocation to the new investment portfolio
- Continuous residence for 7 years
Key development: The 2024 update explicitly includes virtual assets like Bitcoin and Ethereum ETFs among approved investment options.
Bitcoin ETF Math: The 60 BTC Threshold
At current valuations (July 2024):
- HKD 27M ≈ 345 USD ≈ 60 BTC
- Equivalent to 1,144 ETH for Ethereum investors
This means holding 60 Bitcoin spot ETF units (plus the HKD 3M portfolio requirement) could potentially qualify investors for residency.
Approved Cryptocurrency ETFs in Hong Kong
The Securities and Futures Commission (SFC) has approved six spot ETFs from three issuers:
Bitcoin Spot ETFs
- Bosera HashKey Bitcoin ETF (3008.HK)
- ChinaAMC Bitcoin ETF (3042.HK)
- Harvest Bitcoin Spot ETF (3439.HK)
Ethereum Spot ETFs
- Bosera HashKey Ethereum ETF (3009.HK)
- ChinaAMC Ethereum ETF (3046.HK)
- Harvest Ethereum Spot ETF (3179.HK)
👉 Explore ETF investment strategies
Strategic Advantages of Crypto ETF Investments
Portfolio Diversification
- Negative correlation with traditional assets
- Enhanced risk-adjusted returns
Institutional-Grade Security
- Regulated custody under SFC supervision
- Trust-based asset protection with insurance coverage
- Full asset backing (100% underlying crypto exposure)
Operational Convenience
- Tradable through conventional brokerage accounts
- USD/HKD settlement options
- Real-time NAV tracking
FAQ: Crypto Investment Migration
Q: Can I combine different crypto ETFs to meet the HKD 27M requirement?
A: Yes, the investment can be spread across multiple approved virtual asset products.
Q: What happens if my crypto holdings fluctuate below the threshold?
A: Investors must maintain the minimum investment value throughout the 7-year period, requiring potential top-ups during market downturns.
Q: Are there any restrictions on selling ETF units during the residency period?
A: The capital must remain invested, though portfolio rebalancing within approved assets is permitted.
Q: How does this compare to traditional investment migration programs?
A: Crypto ETFs offer greater liquidity and growth potential compared to real estate, but with higher volatility.
👉 Compare crypto vs traditional investment options
Risk Considerations
While this presents novel opportunities, investors should note:
- Cryptocurrency's inherent price volatility
- Evolving regulatory landscape
- Requirement for continuous monitoring
Professional financial advice is strongly recommended before committing to any investment migration strategy.