Hong Kong Approves First Investment Immigration Application Using Ethereum as Asset Proof

• Hong Kong has accepted Ethereum as proof of assets for an investment immigration application worth HKD 30 million.
• The move could influence Ethereum demand and trading activity, aligning with ongoing investor interest in ETH-based financial products.
• The decision paves the way for crypto-backed immigration services while requiring strict compliance with KYC/AML regulations.

Hong Kong has granted its first investment immigration approval using Ethereum (ETH) as proof of assets, marking a major shift in its regulatory framework. The application, valued at HKD 30 million, was confirmed by Certified Public Accountant Clement Siu. This development follows the city’s decision to approve Spot Bitcoin and Ethereum ETFs on April 15, 2024. It reflects Hong Kong’s ongoing efforts to integrate cryptocurrency into its financial and immigration systems.

Ethereum Recognized as a Qualifying Asset for Investment Immigration

Hong Kong’s investment immigration program has now accepted Ethereum as a valid asset class. According to Clement Siu, the approval signifies a shift from traditional investment immigration models, which have historically relied on fiat currencies or tangible assets. The HKD 30 million valuation in ETH reinforces Hong Kong’s commitment to incorporating digital assets into its economic landscape.

This decision positions Hong Kong as one of the first jurisdictions to actively accommodate cryptocurrency investors within its residency framework. The move could establish a precedent for other governments evaluating similar policies. It also signals a strategic effort to attract high-net-worth individuals and crypto entrepreneurs seeking residency through digital asset holdings.

Impact on Hong Kong’s Crypto Market and Capital Inflows

Hong Kong’s policy adjustment comes amid an evolving Ethereum market. Data from SoSoValue shows that, as of February 7, Ethereum spot ETFs recorded no net inflows or outflows. Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) both registered no net change for the day.

Historically, ETHE has recorded a net outflow of $3.926 billion, while the Grayscale Ethereum Mini Trust ETF has reported a total net inflow of $612 million. The total net asset value of Ethereum spot ETFs currently stands at $9.88 billion. Additionally, the Ethereum ETF market cap ratio is 3.17% relative to Ethereum’s total market capitalization, with a historical cumulative net inflow of $3.179 billion.

These figures indicate ongoing investor interest in Ethereum-based financial products, despite market fluctuations. The approval of ETH for investment immigration could further influence Ethereum demand, potentially impacting trading activity and investment trends.