Hong Kong authorities have reportedly recognized Bitcoin and Ethereum as valid proof of assets for investment immigration applications.

This milestone move signals the region’s increasing openness to digital assets in its financial system.

Hong Kong Paves the Way for Crypto Investors in Immigration Applications

According to reports from Colin Wu, the Hong Kong government has approved at least two applicants who used Bitcoin and Ethereum to meet the investment immigration threshold.

Xiao Yaohe, an accountant, revealed that one of his clients secured approval from the Hong Kong Investment Promotion Agency by presenting Ethereum, valued at HK$30 million (approximately $3.8 million), as proof of assets.

Another applicant, whose request was approved in October 2024, used Bitcoin to meet the requirement. While specific details remain undisclosed, sources suggest both applicants may be from mainland China.

These approvals mark a turning point for cryptocurrency adoption in Hong Kong’s immigration policies.

Authorities confirmed that they reached these decisions after extensive internal discussions. They also disclosed that two more individuals had submitted cryptocurrency holdings as part of their application processes.

To be eligible for investment immigration, applicants must prove they own at least HK$30 million ($3.85 million) in assets and commit to investing the same amount in Hong Kong within six months.

The government requires that crypto assets be stored in cold wallets or held on reputable exchanges such as Binance.

Historically, investment immigration in Hong Kong has primarily revolved around stocks. However, it remains unclear whether direct cryptocurrency investments or crypto-based exchange-traded funds (ETFs) will qualify under these new approvals.

Successful applicants initially receive a two-year visa, which requires three renewals before obtaining permanent residency. Authorities will monitor asset holdings throughout this period to ensure compliance.

This move reflects Hong Kong’s ambition to strengthen its position as a global hub for digital finance. Over the years, the city has prioritized regulatory frameworks for stablecoins and crypto exchanges to its leadership in Asia’s digital asset sector.

A recent SEC filing revealed that BlackRock increased its stake in Strategy (formerly MicroStrategy) to 5%, equivalent to approximately 11.2 million shares.

Strategy’s frequent Bitcoin acquisitions have made it a go-to option for institutional players seeking indirect Bitcoin investment.

MicroStrategy’s Shares Are Up

In a recent filing, BlackRock, the world’s largest asset manager, disclosed a new acquisition of Strategy’s shares. This latest purchase represents a 0.91% increase from its previous 4.09% ownership as of September 2024.

A Schedule 13G is filed when an investor acquires more than 5% of a publicly traded company’s stock but does not intend to influence or control the company. Institutional investors must file within 45 days after year-end or within 10 days if ownership exceeds 10%.

According to TradingView, Strategy experienced larger trading volumes in response to BlackRock’s purchase, while its shares on NASDAQ increased by 2%.

The timing of BlackRock’s increased stake coincides with Strategy’s continued Bitcoin accumulation. The company’s recent financial results reveal a record-breaking Q4 2024 for Bitcoin purchases, with acquisitions surpassing $20 billion. 

Earlier this week, Michael Saylor announced that Microstrategy has rebranded to Strategy, incorporating the Bitcoin symbol in its official logo. Under its new brand name, the company aims to gain $10 billion on its Bitcoin holdings in 2025.

Less than two weeks ago, Strategy bought $1.1 billion in Bitcoin for the second time in one week. However, earlier this week, the firm stopped its 12-week streak of Bitcoin purchases.

“Last week, MicroStrategy did not sell any shares of Class A common stock under its at-the-market equity offering program, and did not purchase any Bitcoin. As of February 2, 2025, we hold 471,107 BTC acquired for ~$30.4 billion at ~$64,511 per Bitcoin,” Saylor claimed.

Several factors may explain this change in gears.  Notably, Bitcoin’s value has struggled, particularly since the threat of US tariffs against Mexico, Canada, and China triggered a downturn in the cryptocurrency market.

Given the potential for further economic instability, Strategy may have adopted a more conservative in its future Bitcoin investments.

An Unforeseen Tax Dilemma

Strategy recently disclosed a significant tax issue from its $47 billion ownership in Bitcoin holdings. The company’s $18 billion in unrealized gains could be subject to the US corporate alternative minimum tax (CAMT) enacted in 2022 under the Biden administration. 

This tax, designed to prevent companies from minimizing taxable income, applies a 15% rate to adjusted financial statement earnings, potentially taxing gains even before assets are sold.  

While the Internal Revenue Service (IRS) has exempted unrealized stock gains, it has not yet extended this treatment to cryptocurrencies, leaving Strategy liable for billions in taxes starting in 2026.

BlackRock’s recent purchase offers some relief to Strategy as it continues to prioritize Bitcoin accumulation.

President Donald Trump’s majority-owned company, Trump Media and Technology Group Corp. (TMTG), is preparing to introduce exchange-traded funds (ETFs) and separately managed accounts (SMAs) under the Truth.FI brand. 

The company has applied for trademarks related to these investment vehicles, including a Bitcoin (BTC) ETF.

Trump’s ETF Venture

The proposed investment products include the Truth.Fi Made in America ETF and SMA, Truth.Fi US Energy Independence ETF and SMA, and Truth.Fi Bitcoin Plus ETF and SMA. These offerings are designed to appeal to investors aligned with the company’s “America First” principles.

“We’re exploring a range of ways to differentiate our products, including strategies related to Bitcoin. We will continue to finetune our intended product suite to develop the optimal mix of offerings for investors who believe in America First principles,” said TMTG CEO Devin Nunes.

Nunes emphasized that the goal of Truth.Fi is to provide investors with alternatives to traditional financial products. These products, he claims, are influenced by “woke funds and debanking problems.”

TMTG plans to allocate up to $250 million to these financial instruments as part of this initiative. Charles Schwab will act as the custodian. 

Meanwhile, Yorkville Advisors will serve as the Registered Investment Advisor, overseeing product development and regulatory approvals.

The announcement has sparked discussion among financial analysts and ETF experts. Bloomberg’s senior ETF analyst, Eric Balchunas, noted that despite Trump’s brand recognition, these ETFs may struggle to gather significant assets compared to existing products like the iShares Bitcoin Trust ETF (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC).

However, he acknowledged their contribution to the broader adoption of Bitcoin in mainstream finance.

“Safe to say first-ever POTUS ETF issuer. What a country,” Balchunas remarked.

Meanwhile, economist and vocal Bitcoin critic Peter Schiff speculated that the move could reduce the likelihood of a US Bitcoin Strategic Reserve. 

“Well if this does in fact happen, I think it takes a Bitcoin Strategic Reserve off the table, if it ever really was on the table to begin with,” he stated.

While TMTG is expanding its financial footprint, Trump’s other financial venture has faced challenges. The Official Trump (TRUMP) meme coin, in particular, has struggled in the market after its initial hype faded.

The price has declined significantly after reaching an all-time high of $73.4. It was trading at $17.6 at press time, reflecting a 7.6% drop in the past 24 hours.

This represents a 76.0% decrease from its record high. Moreover, the market continues to remain under a bearish stronghold.