Source: iStock/Onfokus

Value Partners, a Hong Kong-based company says it has plans to tokenize gold assets and also make an entry to the much anticipated Exchange Traded Fund (ETF) market.

According to a report from local media sources, Zhao Shande, a senior strategist of the firm’s ETF business spoke on the United States inflation policies such as raising interest rates and its impact on the economy. 

The analyst expects gold prices to rise and maintain this year’s momentum as investors turn to the asset to avert negative macroeconomic conditions. Asserting his bullish gold stance, he projects prices of $2,300 per ounce advising classes of investors to withdraw from stocks and increase their gold exposure. 

“Market expectations for an early interest rate cut in the United States are rising, but Zhao Shande believes that the U.S. economic data is still inconsistent and the Federal Reserve will adopt a cautious approach when deciding whether to cut interest rates. Judging from the current situation, according to his assessment, the chance of a soft landing for the US economy is “50:50…”

The company looks to tokenization

Shande noted that while the company looks to increase its gold investment, it can also increase the value of its gold and sustainability through tokenization.

This year several attempts from traditional investors at tokenization deploying blockchain technology and onboarding real-world assets. A key reason for the innovation is to create easy access to all classes of investors driving a new market cycle and participation. 

The decision to tokenize its three-ton gold worth $201 million is timely as both centralized and decentralized finance (DeFi) anticipate the growth of real-world assets tokenization in 2024.

Value Partners currently offers the only Hong Kong-backed gold ETF with physical gold and is in a pile position to increase its business value should tokenization plans get mainstream adoption.

The goal for the firm is to offer more investment windows to the asset allowing more users to increase their exposure to gold.

ETF drive in Hong Kong 

Furthermore, the firm plans to diversify its ETF portfolio by offering digital asset-related ETFs with high hopes for the sector’s development also as a window of investment. 

“He added that he is considering issuing ETFs related to virtual assets and tokens. He believes that as the cryptocurrency market matures and supervision is orderly, it will promote the development of virtual assets,” the report reads.

Hong Kong’s pro-crypto stance will stimulate growth in the market attracting billions of retail funds according to the analysts. As investment flows into crypto products with a market capitalization of $52 billion, regulators are now keen on supporting pro-industry paths. 

In the United States, anticipation is high for a potential spot ETF approval with several firms releasing adverts to stay ahead while wealth managers predict massive growth in the wider market.

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