Trade agreements between China and Hong Kong have the potential to allow investors in China to access Bitcoin ETFs in Hong Kong. The recent launch of spot exchange-traded funds for BTC and Ethereum in Hong Kong has opened up new opportunities for Asian traders. However, there is speculation about whether Chinese investors will be able to access these crypto-focused investment products without any restrictions.
The launch of ETFs in Hong Kong had a relatively calm first week compared to their counterparts in the USA. However, the proximity of Hong Kong to China has sparked discussions about whether mainland Chinese investors will be able to access these ETFs.
Richard Byworth, managing partner at SyzCapital and a BTC investor, has suggested that Bitcoin ETFs listed in Hong Kong could soon be accessible to investors in mainland China. He mentioned talks about the inclusion of the spot BTC ETF in Stock Connect, a mechanism that allows qualified investors to access suitable stocks in different markets. The Shenzhen-Hong Kong Stock Connect specifically links the Shenzhen Stock Exchange with the Hong Kong Stock Exchange, enabling cross-border investments.
While Byworth’s claim is currently just a rumor, China’s anti-crypto stance has generated significant debate on social media. Some believe that mainland Chinese investors may soon have the opportunity to access Hong Kong ETFs. Brian HoonJong Paik, co-founder and COO of SmashFi, addressed these rumors and pointed out that China’s wealth is heavily concentrated in real estate, with a large number of vacant homes. He suggested that the Communist Party of China may be looking for alternative assets to reduce social unrest.
In another article, Paik discussed various trade arrangements between the Shanghai and Hong Kong markets that could potentially enable Chinese investors to invest in spot BTC ETFs in Hong Kong.
It is important to note that the information in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.