Chinese investors may decide to invest in Hong Kong’s Bitcoin ETF, which could increase BTC to $150,000.
Bitcoin exchange-traded funds (ETFs) in Hong Kong may soon be accessible to mainland Chinese investors, which has caused some excitement in the cryptocurrency industry.
A major step forward for crypto trading in Asia was the April 30 introduction of spot Ethereum and Bitcoin ETFs in Hong Kong. Hong Kong’s geographical and economic closeness to China has increased the likelihood of cross-border crypto investments, notwithstanding the limited initial trading volume.
Notable Bitcoin investor and SyzCapital managing partner Richard Byworth recently dropped hints about a major breakthrough. Byworth brought up the idea of adding the spot Bitcoin ETF to the Stock Connect program during a debate with Samson Mow on social media site X (formerly Twitter).
This program enables cross-border trading and includes the Shenzhen-Hong Kong and Shanghai-Hong Kong Stock Connects. By partnering with regional clearinghouses and brokers, investors may have access to shares traded on both sides’ marketplaces.
“I returned from Hong Kong not long ago. Adding the ETF to Stock Connect is being considered. This has very far-reaching consequences. It simply implies mainland money can purchase it,” Byworth added.
The remarks made by Byworth have revived optimism, even if China has strict anti-crypto legislation. Another SmashFi co-founder and COO, Brian HoonJong Paik, agreed. In light of China’s real estate problems, he stressed the need for alternative assets.
Paik made the valid point that the Chinese Communist Party may be open to considering easily accessible investment diversifications, such as Bitcoin ETFs, due to the large amounts of cash that are now sitting in idle real estate.
“Mainland China and Hong Kong are becoming more financially integrated thanks to the accessibility of the Hong Kong stock market for Chinese investors.” Paik warned that institutional and ordinary investors in China and Hong Kong will feel the effects of a Bitcoin ETF exclusion.
The positive position on Bitcoin’s price estimate by Bernstein analysts adds to the hopeful view. Bernstein analysts Gautam Chhugani and Mahika Sapra still think Bitcoin might hit $150,000 by 2025’s end, despite its recent decline to about $57,000.
According to the experts, the market circumstances after the halving were favourable, and there were strong inflows into US Bitcoin ETFs.
“The Bitcoin measures show a healthy cycle, although it is still in its early phases, and we are even more confident in that assessment.” The experts noted that the risk-reward here is still appealing.
Experts’ optimistic market analytics, smart financial movements in Hong Kong, and possible regulatory relaxation in China all point to a bullish moment for Bitcoin. Major changes may be on the horizon for the cryptocurrency market as mainland investors set their sights on Hong Kong’s exchange-traded fund (ETF) sector.
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