Richard Byworth, a BTC investor, remarked that mainland Chinese investors may soon have access to Bitcoin ETFs listed in Hong Kong. This reply has sparked speculation.
The initial week of trading activity for ETFs based in Hong Kong could have been better than that of their American counterparts. However, the proximity of Hong Kong to China has emerged as a significant factor in deliberations regarding the potential accessibility of these spot ETFs for investors in mainland China.
Richard Byworth, a BTC investor and managing partner at SyzCapital, has sparked speculation with his remarks that mainland Chinese investors may soon have access to Bitcoin ETFs listed in Hong Kong.
According to Byworth’s X response to Samson Mow, there have been discussions regarding potentially adding the spot Bitcoin ETF to Stock Connect.
With a predetermined quota, Stock Connect grants qualified investors from one market access to eligible shares in another. The Shenzhen-Hong Kong Stock Connect links the Shenzhen Stock Exchange and the Hong Kong Stock Exchange as a route for cross-border investments.
To trade shares in the other market, investors may utilize the available clearing houses and local brokers. Although it encompasses many stocks, the Stock Connect program is subject to a daily quota.
Although Byworth’s statements are merely conjecture, China’s anti-cryptocurrency position has sparked considerable discourse on social media.
Additionally, SmashFi’s co-founder and chief operating officer, Brian HoonJong Paik, commented on the speculations that investors from mainland China might soon have access to Hong Kong ETFs.
“Currently, one hundred million homes are unoccupied,” he stated, adding that real estate accounts for 70% of Chinese riches. Alternative assets are required for the CCP to quell social unrest.
Paik enumerated several trade agreements between the Hong Kong and Shanghai exchange rates in a separate post that might permit Chinese investors to purchase spot Bitcoin ETFs in Hong Kong.
In addition to the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, the Qualified Domestic Institutional Investor (QDII) scheme permits overseas investments, including Hong Kong, by qualified Chinese institutional investors (such as banks, funds, and insurance companies).
Mutual recognition of funds (MRF) is an additional trade agreement between Hong Kong and the People’s Republic of China that permits the distribution of eligible mainland and Hong Kong funds in each other’s markets.
In 2021, Bitcoin mining and the provision of services by foreign cryptocurrency exchanges to clients on the Chinese mainland were prohibited by China. Notwithstanding the comprehensive prohibition on crypto-related enterprises and services, Chinese courts have recognized Bitcoin as legitimate property in multiple jurisdictions.
