Bitcoin and Ethereum ETFs: Beijing invited to Hong Kong's banquet!

Bitcoin and Ethereum ETFs are preparing to enter the mainland Chinese market, following a detour through Hong Kong. A financial windfall that could well shake up a China facing recurring economic crises. The success of the trackers from their launch in Hong Kong has already convinced many local players.

Hong Kong’s Bitcoin ETFs Ready to Sweep Over Mainland China!

Launched last April 15th, the Bitcoin and Ethereum-backed ETFs in Hong Kong could inject billions of dollars into the crypto market. A prospect that is attracting the attention of many Chinese individuals, especially those living outside the “Pearl of the Orient”.

NEW: 🇨🇳 Hong Kong #Bitcoin ETF issuer considers seeking approval to trade in mainland China.

The implications of this are huge 🙌 pic.twitter.com/FmNFiSjZib

— Bitcoin Magazine (@BitcoinMagazine) May 10, 2024

Richard Byworth, managing partner at SyzCapital, has cast doubt by suggesting that Hong Kong-listed Bitcoin ETFs could soon open up to Mainland Chinese investors. His comments, reported by X, and shared by Mitrade, sparked speculation about a possible integration of these ETFs into the Stock Connect system. This could lead to a massive influx of capital from Mainland China into these digital asset funds.

“I just got back from Hong Kong. There is talk that the ETF will be added to the Stock Connect system. The implications are absolutely massive (essentially, this means Mainland China money can buy it),” said Mr. Byworth. These statements follow an exchange between Richard Byworth and Samson Mow, who praised the impressive performance of the ChinaAMC Bitcoin ETF, which raised $121 million on its first day of trading.

Brian Hoon-Jong Paik, co-founder and COO of SmashFi, spoke about the financial and socio-economic motivations that could spark Mainland China’s interest in Hong Kong Bitcoin ETFs. He highlighted the vast amount of Chinese wealth locked up in real estate and explained that several existing financial agreements already facilitate a significant flow of capital from Mainland China to Hong Kong markets. According to him, the exclusion of BTC ETFs from these agreements could lead to significant discontent and disrupt the investment landscape in both regions.

Other Similar Initiatives

Meanwhile, Han Tongli, CEO of Harvest, hinted that the Bitcoin and Ethereum ETFs listed in Hong Kong might soon be accessible to Mainland Chinese investors. At the Bitcoin Asia conference in Hong Kong, Han Tongli stated that he “does not rule out” the possibility of including them in the Stock Connect system, reports the South China Morning Post.

This news created a buzz at the Bitcoin Asia conference, where ETFs were a hot topic. Han Tongli, CEO of Harvest, opened the door to a new wave of investments from Mainland China into the Hong Kong Bitcoin and Ethereum ETFs.

A reminder: the Stock Connect system, linking the stock exchanges of Mainland China and Hong Kong, would allow Chinese investors to directly access these digital asset funds. This potential opening could start a new chapter for cryptocurrencies in Mainland China, where cryptocurrency regulations are more stringent.