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06 May 2024
Mainland China to Gain Access to BTC-ETFs in Hong Kong

Investment funds registered in Hong Kong and linked to Bitcoin may soon become available to Chinese investors. This was reported by Richard Bayworth, managing partner of 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)” the specialist said.

Brian Hung-Jung Pike, co-founder and Chief Operating Officer of SmashFi, emphasized that Chinese citizens have invested a significant portion of their savings in real estate. He noted that around 100 million houses are standing vacant, indicating the need for additional investment opportunities.

Pike also pointed out that the existing Mutual Recognition of Funds (MRF) agreement between Hong Kong and mainland China facilitates the expansion of investment funds into each other’s markets due to a simpler approval process.

According to Bloomberg analytics, the combined inflow into investment funds linked to Bitcoin and Ether on the first day of launch amounted to around $292 million.

Earlier, experts noted that such investment products would be “lucky” if they managed to attract around $500 million in total. An analyst called the predicted $25 billion from Matrixport “unbelievable.”

Recall that trading in six investment funds linked to Bitcoin and Ether began on the Hong Kong Stock Exchange on April 30.