Hong Kong Bitcoin ETFs off-limits for Mainland China investors

According to data analyst Jack Wang from Bloomberg, the launch of spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETF) in Hong Kong will not provide access to the market for investors in mainland China. Despite the approval of these ETFs in Hong Kong, the three Chinese asset managers – China Asset Management, Harvest Global Investments, and Bosera – will not be able to offer Bitcoin or Ether exposure to investors in mainland China. This is due to a statement issued by the Chinese State Council in September 2021, which prohibits financial institutions from engaging in any crypto-related transactions. Wang emphasized that even the futures-based crypto ETFs listed in Hong Kong will be rejected by brokers and will not be accessible to Chinese investors in the short term. He also stated that the launch of these ETFs will not have a positive impact on the regulatory environment in mainland China or open up the crypto market to Chinese investors. Thomas Zhu, the head of digital assets at China Asset Management, mentioned that the eligibility of mainland Chinese investors to acquire crypto ETFs in Hong Kong depends on future regulatory modifications. Bloomberg analyst James Seyffart added that the assets of Bitcoin ETFs in the United States far exceed the total assets of all ETFs in Hong Kong, emphasizing the significant difference in size and impact between the two markets.