Bitcoin Spot ETFs: A Novel Path to Hong Kong Residency for Investors?
In the rising tide of Bitcoin spot ETFs, there’s a little-known fact that might catch the eye of investors looking for residency options: owning a certain number of these ETFs could now count as a qualifying investment to aid high-skilled professionals in settling in Hong Kong.
Virtual Assets Counted as Financial Assets
In recent years, Hong Kong has been eager to attract high-skilled talent. Thanks to the “Capital Investment Entrant Scheme,” the region saw its net immigration figures rise by over 174,000 last year, marking the first rebound in population numbers. On March 1st of this year, the Hong Kong government announced a new iteration of this scheme, which grants permanent residency to those who invest HK$30 million and live continuously in the region for seven years.
However, a significant update in the new scheme is that applicants must invest at least HK$27 million in approved financial assets and non-residential real estate, with an additional HK$3 million invested in a new “Capital Investor Entrant Scheme portfolio.”
Of note in the investment options for the required HK$27 million is the inclusion of virtual assets among financial and non-residential real estate assets.
60 Bitcoins + HK$3 Million for Immigration Eligibility
The approved financial assets cover a range that includes stocks of companies listed on the Hong Kong Stock Exchange (traded in HKD or RMB) and products within “Qualified Collective Investment Schemes.”
The latest list of approved investment assets includes open-ended fund companies (OFCs) managed by Type 9 licensed firms in Hong Kong as investable assets. As of April 30th, the list of exchange-traded funds approved by the Hong Kong Securities and Futures Commission includes six Bitcoin spot ETFs and Ethereum spot ETFs.
Considering the investment threshold of at least HK$27 million in approved financial assets, which currently equals about US$3.45 million—approximately the value of 60 Bitcoins, or 1,144 Ether—the inclusion of these ETFs provides a significant opportunity.
Practical Example
For instance, if an applicant opts to indirectly own Bitcoins through ETFs, purchasing around 60 Bitcoin units plus investing HK$3 million in the new “Capital Investor Entrant Scheme portfolio” and residing continuously for seven years could lead to Hong Kong residency.
This innovative approach not only aligns with global trends of increasing acceptance of cryptocurrencies but also positions Hong Kong as a pioneering city in integrating digital assets into formal investment and immigration frameworks.
