Hong Kong’s Pando Finance launches blockchain-themed ETF to give investors a taste of cryptocurrencies ‘with minimum risk’
- Pando Finance’s two actively-managed ETFs with a focus on virtual assets began trading in Hong Kong on Thursday
- Investors can benefit from the development of cryptocurrencies through their existing financial services, CEO says
The two ETFs started trading at HK$8 (US$1.02) on Thursday morning, a 3 per cent premium from the indicative net asset value of HK$7.77 for both funds, before ending the day at HK$7.925 each.
“We want to provide a way for traditional investors and retail clients to gain exposure to and benefit from the development of the industry, in the most comfortable way and with minimum risk,” Ren Junfei, CEO and director of Pando Finance, said in an interview.
“Investors can benefit from the development of this industry through the scope of their existing financial services. They will not need to open an account on Binance or other cryptocurrency exchanges, and can just place orders on their existing brokerage accounts.”
“The impact of the bankruptcy of FTX will continue to be felt in 2023, with calls for greater transparency,” Gwenda Ho, tax partner at PwC Hong Kong, said in a statement.
Pando Finance’s Ren said the collapse of FTX would benefit the industry in the long term and would help to improve regulation. “The FTX [debacle] may hurt some investors’ confidence in this industry and make them more careful and cautious in their next investment in this space, but in the long run, this will allow the overall industry to develop in a healthier manner,” she said.
FTX remnants remind Hong Kong of the bullet it dodged
Pando Finance’s blockchain-themed ETF will invest at least 70 per cent of its net assets in the stocks of blockchain-related companies, such as those involved in ledger systems, decentralised databases, cryptocurrency mining and others that will benefit from the development of such technology.
Its innovation-themed ETF will invest at least 70 per cent of its net asset value in the equities of companies involved in innovative businesses, such as information technology, e-commerce, electric vehicles, artificial intelligence, the metaverse, as well as blockchain.
“We have done a lot of due diligence when picking the right stocks, and have been very careful in picking the right industries. Compared to cryptocurrency tokens, these listed companies are regulated and must disclose their financial situations regularly,” Ren said.
“Investors will have clearer and more transparent information to back up their judgment, so the level of risk is much lower.”
