As a researcher with experience in the financial industry, I share Jack Wang’s perspective that the upcoming launch of spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) in Hong Kong will not significantly impact the crypto market in mainland China for Chinese investors.
As a researcher studying the financial markets, I’ve come across some intriguing information regarding the upcoming launch of Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) in Hong Kong. However, it’s essential to clarify that these developments won’t directly provide mainland Chinese investors with access to these digital assets, contrary to some common beliefs. According to my analysis based on Bloomberg data, the regulatory framework in China currently doesn’t allow its residents to invest in offshore ETFs, including those listed in Hong Kong.
After Hong Kong granted approval for bitcoin and ethereum spot ETFs, the trio of Chinese asset management firms – China Asset Management, Harvest Global Investments, and Bosera – launched these crypto ETFs via their Hong Kong branches on April 30.
As an analyst, I’d put it this way: Despite having strong connections to China’s financial sector, ETF issuers cannot offer investment products linked to Bitcoin or Ether within the Chinese market.
During a Bloomberg webinar on April 24 discussing Hong Kong’s approval of spot Bitcoin ETFs, Wang stated that “Mainland Chinese citizens are excluded from this participation.”
In September 2021, the Chinese State Council released a declaration prohibiting financial institutions from opening accounts, facilitating transfers, or acting as clearinghouses for cryptocurrency transactions.
As an analyst, I’ve come across the issue where attempting to trade a futures-based crypto ETF listed in Hong Kong proved unsuccessful for me. The brokers outright rejected my trade request. In the near future, it seems Chinese investors will not engage with this product at all.
He similarly stated his belief that the introduction of Bitcoin and Ether ETFs in Hong Kong would not improve the regulatory landscape for cryptocurrencies in mainland China, nor grant Chinese investors access to this market.
“I would say it’s 100% not going to happen at least,” the analyst said.
Based on the remarks of Thomas Zhu, the head of digital assets at China Asset Management in Hong Kong, the ability of mainland Chinese investors to purchase crypto ETFs in Hong Kong hinges on the implementation of upcoming regulatory changes.
Starting from 2014, regulators in the Mainland and Hong Kong have worked diligently to set up the Mainland-Hong Kong Stock Connect. This initiative allows Mainland investors to buy eligible Hong Kong stocks and Exchange-Traded Funds (ETFs) directly through trading links. (Zhu’s statement paraphrased)
As a researcher examining the burgeoning crypto ETF market, I’ve noticed an increasing buzz surrounding the anticipated launch of spot Bitcoin ETFs in Hong Kong. However, it’s essential to consider that Bitcoin ETFs in the US currently hold more assets than all ETFs present in Hong Kong combined, according to Bloomberg analyst James Seyffart’s recent insights.
As a crypto investor, I’d put it this way: The US ETF market holds nearly $9 trillion in assets – that’s a staggering amount, thirteen zeros after the dollar sign. In contrast, Hong Kong’s ETF market is only around $50 billion. Mainland China’s ETF market, on the other hand, boasts an impressive $325 billion. These figures represent significant discrepancies in size and influence within the global ETF landscape.
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2024-04-26 17:11