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Earth Intelligence

06 May 2024 — 4 min read

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Berkshire Hathaway Holdings
Hong Kong BTC ETF

Berkshire Hathaway Holdings:

In the first quarter of 2024, Berkshire Hathaway's cash reserves increased to $189 billion due to a reduction in its stock holdings, including selling shares of Apple, one of its substantial investments. During this period, Berkshire sold approximately $20 billion worth of stocks but only purchased $2.7 billion. The total value of Berkshire Hathaway’s stock portfolio decreased from $354 billion at the end of 2023 to $336 billion.
The company reduced its stake in Apple by about 115 million shares, or 13%, starting with the sale of roughly 10 million shares in late December. By the end of the first quarter, Berkshire's investment in Apple was valued at $135.4 billion, down from $174.3 billion at the year's end. Apple remains a significant part of Berkshire's portfolio, which Buffett refers to as one of the company's four giants.
These portfolio adjustments occurred in a context where Berkshire Hathaway faced challenges finding attractive investment opportunities, influenced by the competitive yields on U.S. government debt. Despite these portfolio changes, Berkshire Hathaway maintains a substantial market presence with a market capitalization of $865.43 billion, making it the eighth largest company by market cap globally. This reflects its ongoing influence in financial markets.

Hong Kong BTC ETF:

Hong Kong recently launched six spot bitcoin and ether exchange traded funds (ETFs), marking it as the first region in Asia to offer these products to retail investors at spot prices. This development occurred shortly after Hong Kong's Securities and Futures Commission approved the ETFs from three Chinese companies: China Asset Management, Bosera Asset Management, and Harvest Global Investments. This move positions Hong Kong ahead of other Asian financial hubs like Singapore and Dubai, who are also aiming to establish themselves in the regulated digital assets market.
The introduction of these ETFs is seen as a strategic step for Hong Kong to attract both institutional and retail investors into a regulated environment, thus potentially increasing the market size and diversity of financial products available. The impact of these new offerings on Hong Kong's market and their adoption rate remains a key point of observation, given the region's significant cryptocurrency user base. On their first day of trading, the newly launched bitcoin and ether ETFs in Hong Kong saw a combined trading volume of over $100 million.
This figure, while significant, contrasts with the debut of similar products in the U.S., where the initial trading volume exceeded $4.5 billion. The launch of these ETFs in Hong Kong came after the U.S. Securities and Exchange Commission (SEC) had already approved bitcoin ETFs in America, setting a regulatory precedent that may have influenced Hong Kong's decision to follow suit. The approval and launch of these ETFs in Hong Kong signal a broader acceptance and integration of bitcoin and other cryptocurrencies into mainstream financial systems.
This acknowledgment is a crucial step towards the institutionalization of cryptocurrencies, enhancing their credibility and potentially leading to increased investment from traditional financial sectors. The substantial trading volumes and asset management growth observed in major financial markets, like BlackRock's ETFs crossing $15 billion in net inflows, underscore the rising demand and acceptance of cryptocurrency-related products.

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