Tiger Brokers: Hong Kong investors are increasingly willing to invest in crypto

Earlier, Financial Secretary Paul Chan stated that the goal of establishing Hong Kong as a Web3.0 hub is clear, and many brokers and exchanges are upgrading their existing licenses to offer cryptocurrency trading services to investors. 

In an interview with CFTime, Kenny Chan, Executive Director of Institutional Business at Tiger Brokers (Hong Kong), noted that since the opening of cryptocurrency trading, the number of cryptocurrency trading orders and the number of traders in Hong Kong have both increased by more than double month-over-month compared to the same period last month. 

He believes that as the virtual asset trading industry is gradually integrated into Hong Kong's mainstream finance, it will attract more international capital and investors into the market.

Chan pointed out that Tiger Brokers received approval from the Securities and Futures Commission (SFC) in January to upgrade its Type 1 license conditions, allowing professional investors to trade virtual assets on the SFC-licensed platform through Tiger Brokers (Hong Kong). Further license upgrades were approved in May and June, expanding the service to professional and retail investors in Hong Kong. In other words, the upgrade from conditional approval to full approval took about six months.

He further stated that since the full opening of virtual asset trading to retail investors in early July, the number of cryptocurrency trading orders has exceeded that of some popular US stocks like Google and Meta for four consecutive weeks. In August, the number of cryptocurrency trading orders and traders in Hong Kong on the platform increased by more than double month-over-month compared to the same period last month, "reflecting the increased investment interest in cryptocurrencies."

Regarding the seemingly lukewarm response to the launch of Bitcoin ETFs in Hong Kong, Chan believes that Bitcoin, and virtual assets in general, are still relatively new investment tools, and investors need time to understand them. He remains confident in the long-term development of virtual assets and related products in Hong Kong.

Several large international exchanges recently announced they would abandon license applications in Hong Kong. Chan commented that governments worldwide are developing more frameworks for regulation in areas such as anti-money laundering, taxation, and capital flows, striving to balance innovation and compliance.

"As a world-leading financial center, Hong Kong strongly supports the compliant and innovative development of different asset types. The company believes that the series of measures actively introduced by the Hong Kong government are beneficial to the healthy and vigorous development of virtual asset trading in Hong Kong, helping to protect investor rights and attract more capital inflows from overseas and international investment institutions and investors," Chan said.

Tiger Brokers Anticipates the Launch of Related Derivative Products

Regarding Tiger Brokers' future deployment in the crypto business, he anticipates increased demand for virtual asset-related derivative products. The launch of more such products will offer investors more investment strategy choices. In the future, Tiger Brokers will continue to expand its virtual asset trading services and increase the variety of virtual asset products.

September saw strong performance in the Hong Kong stock market, mainly driven by central government policies, with Bitcoin also indirectly benefiting, achieving its best September performance in the past 10 years. Tiger Brokers' data also shows that the number of trading accounts and trading orders on the platform reached a two-year high for the entire week. The weekly turnover, number of trading accounts, and Daily Average Trading Turnover (DARTs) for Hong Kong stocks all reached their highest levels in two years.

Asked whether Bitcoin can sustain its upward trend, Chan stated that he does not speculate on market trends but remains optimistic about the future performance of cryptocurrencies as more investors participate in investing in various cryptocurrencies, including Bitcoin.

Chan concluded by expressing confidence in the industry's development in Hong Kong, particularly as the virtual asset trading industry is gradually integrated into Hong Kong's mainstream finance, attracting more international capital and investors, expanding market space. "Overall, we believe that the cryptocurrency market still has great potential. However, investors should proceed with caution: diversify investments to reduce risk, continuously learn and monitor market dynamics and technological developments, and carefully manage risk."