Mainland China May Soon Access Bitcoin ETFs in Hong Kong

Bitcoin ETFs registered in Hong Kong may soon become accessible to investors from mainland China, according to Richard Byworth, managing partner at SyzCapital.

I just got back from Hong Kong. There is talk that the ETF could be added to stock connect. The implications for this are absolutely enormous (basically means mainland money can buy it)

— Richard Byworth ∞/21M (@RichardByworth) May 1, 2024

“I just got back from Hong Kong. There is talk that the ETFs could be added to the Stock Connect system. The implications of this are absolutely enormous,” the specialist stated.

Co-founder and COO of SmashFi, Brian Hoon-Jong Paik, emphasized that Chinese citizens have directed a significant portion of their savings into real estate.

In his view, about 100 million homes remain vacant, indicating a pressing need for additional investment opportunities.

There is a rumor that investors in mainland China cannot invest in #Bitcoin ETFs listed on the Hong Kong Stock Exchange. I don’t believe this is true, and here’s why:

1. Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect: These are cross-border trading links…

— Brian HoonJong Paik (@brianhoonjong) April 15, 2024

“It’s just a matter of time. The CPC needs alternative assets to mitigate social unrest,” the expert noted.

Paik pointed out that the existing Mutual Recognition of Funds (MRF) agreement between Hong Kong and mainland China facilitates the spread of ETFs in each other’s markets through a simplified approval process.

“Excluding Bitcoin products from the arrangements would have significant consequences for both institutional and retail investors in the two jurisdictions,” the expert indicated.

According to Bloomberg analyst Eric Balchunas, the combined inflow into spot BTC and ETH ETFs on the first day after launch amounted to approximately $292 million.

We just put out note with final data (which doesn’t come in as fast as US). In short, HK saw $292m in assets on Day One (we predicted $1b in two years so way ahead of schedule but corrections can derail trajectories as we seeing in US). Ether ETFs grabbed 15% of pie and size… https://t.co/RT8SvMvEuA

— Eric Balchunas (@EricBalchunas) May 2, 2024

Earlier, the expert stated that such products would be “lucky” to collectively attract $500 million. Balchunas described Matrixport’s forecast of $25 billion as “madness.”

As reported, trading of six spot ETFs based on Bitcoin and Ethereum on the Hong Kong Stock Exchange commenced on April 30.