Zhongzefeng Granted Approval for Virtual Asset Investments

2 mins mins

Key Points:

Zhongzefeng’s approval to invest in virtual assets could influence market dynamics.
Up to 10% of funds directed towards crypto investments.
Regulatory move aims at strategic market positioning.

According to an announcement from the Hong Kong Stock Exchange, Zhongzefeng, a listed company, was granted approval by the Hong Kong Securities and Futures Commission on April 2, 2024, to invest up to 10% of its managed assets into virtual assets through its subsidiary, Atlantic Asset Management.

This regulatory approval signifies Hong Kong’s increasing openness to crypto investments, providing institutional pathways for virtual asset involvement. The move may expand investment flow into the local crypto market.

Zhongzefeng’s Entry: A New Era for Hong Kong Crypto Market

Zhongzefeng, through its subsidiary Atlantic Asset Management Co., was given the green light by the Hong Kong Securities and Futures Commission. This approval allows them to direct up to 10% of their managed assets toward virtual assets, enhancing their portfolio’s diversity. The company plans to focus on global stocks, futures, and options, including indices and cryptocurrencies, reflecting a strategic diversification.

Though specific cryptocurrencies are not mentioned, the potential inclusion of major tokens indicates a possible shift in market interest. Institutional investors could see this as an opportunity to further engage with virtual assets, fostering growth in the crypto market.

While no direct reactions from notable figures or community sentiment have emerged, industry experts acknowledge this regulatory progress as a vital step in integrating crypto into mainstream portfolios. The SFC’s approval underscores a cautious but progressive regulatory stance toward integrating virtual assets into managed portfolios. The Hong Kong market is anticipated to witness increased investment activity from institutional players.

Historic Regulatory Progress Positions Hong Kong as a Crypto Hub

Did you know? Hong Kong’s recent approval echoes past regulatory efforts, like the 2023 VATP launch, reinforcing its role as a major hub for virtual asset activities.

CoinMarketCap reports Bitcoin at $84,140.96 with a market cap of $1.67 trillion and a dominance of 61.81%. Recent 24-hour trading volume is approximately $28.71 billion, showing a 1.32% price increase. Bitcoin experienced a 3.89% decrease over 7 days as of April 2, 2025.

bitcoin-daily-chart-92 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:57 UTC on April 2, 2025. *Source: CoinMarketCap*

The Coincu research team suggests that Hong Kong’s measured approach could position it strategically within the global financial landscape. By fostering a regulated environment, Hong Kong might attract significant institutional investments, possibly setting a precedent for broader international acceptance and regulation of virtual assets.