Investors in mainland China might miss out on the opportunity to engage with Hong Kong’s newly approved Bitcoin and Ethereum Exchange-Traded Funds (ETFs).
According to experts, due to stringent domestic regulations, Chinese nationals will likely be barred from participating.
Is the Impact of Hong Kong Bitcoin and Ethereum ETFs Overstated?
The prohibition is not surprising, given China’s restrictive stance on cryptocurrencies. Since the 2021 ban on trading and mining cryptocurrencies, Chinese traders have faced significant hurdles in accessing global crypto markets.
Conversely, Hong Kong has shown a more open stance towards cryptocurrencies. The city’s regulators approved the Bitcoin and Ethereum ETFs this past Monday, allowing issuers such as ChinaAMC, Harvest Global, and Bosera International to introduce these investment vehicles.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
Although Hong Kong’s Securities and Futures Commission (SFC) has not announced the development, the issuers have confirmed the approval. Many view the ETFs as a potential catalyst for increased Bitcoin prices. However, restrictions on mainland investment might dampen these hopes.
Eric Balchunas, a senior ETF analyst at Bloomberg, expressed skepticism about the potential impact of these ETFs due to the size differences between the US and Hong Kong markets.
“[We] don’t expect a lot of flows (I saw one estimate of $25 billion that’s insane). We think they’ll be lucky to get $500 million,” Balchunas said.
He noted that while the introduction of thes
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Author: Harsh Notariya
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