Experts predict limited impact from Hong Kong's new Bitcoin and Ethereum ETFs. Despite approval, China's crypto ban restricts mainland investors, raising doubts about substantial market influence.
China's crypto ban limits mainland investors from Hong Kong's Bitcoin and Ethereum ETFs. Despite Hong Kong's openness, experts like Eric Balchunas remain skeptical about the ETFs' market impact.
Since China's 2021 ban on crypto trading and mining, mainland investors face significant hurdles in accessing global crypto markets. In contrast, Hong Kong regulators approved Bitcoin and Ethereum ETFs, allowing issuers like ChinaAMC, Harvest Global, and Bosera International to launch these investment vehicles.
However, the approval of these ETFs may not lead to substantial market shifts. Balchunas, a senior ETF analyst at Bloomberg, predicts modest inflows compared to the US market, citing the small size and inexperience of Hong Kong’s ETF market.
Despite these limitations, Hong Kong ETFs could benefit global investors with extended trading hours, offering some advantage for institutional trading strategies.
Sumit Gupta, co-founder of CoinDCX, notes that this development underscores the global nature of the evolving crypto industry, suggesting gradual but promising prospects for future growth.
