China's Crypto Crackdown: Will Hong Kong's Bitcoin ETFs Open Up to Mainland Investors?
Rumors are swirling in the crypto community that Hong Kong's Bitcoin ETFs may soon be accessible to investors from mainland China. Richard Byworth, Managing Partner at SyzCapital, has fueled the speculation, suggesting that the ETFs could be added to the Stock Connect program, which would allow mainland investors to access Hong Kong's financial products.
Byworth, who recently returned from Hong Kong, tweeted that the ETF could be included in the Stock Connect program, which would have a massive impact. The Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs already allow mainland investors to access Hong Kong's financial products.
Hong Kong's financial regulator recently approved Bitcoin ETFs, and early data from Farside suggests that the ETFs' net inflows are a tiny fraction of those in the US. However, Bloomberg ETF expert Eric Balchunas noted that the Hong Kong market is relatively small compared to the US, with only $22.5 million in crypto index funds flowing in so far.
But Balchunas also pointed out that the ETFs in Hong Kong are already as large as $310 million, equivalent to $50 billion in the US market. For the local market, the index funds are already as big as those in the US market.
The news comes as Chinese investors are increasingly seeking alternative stores of value, following a collapse in the country's real estate sector. Will they soon have access to Hong Kong's Bitcoin ETFs? Only time will tell.
For more Crypto and Finance news check out our Blog: https://finixyta.com/worldcoin-wld-the-iris-verified-cryptocurrency-revolution/