According to Bloomberg analyst Jack Wang, major players in the Chinese market such as China Asset Management, Harvest Global Investments, and Bosera will not be able to extend their reach to mainland investors by creating spot bitcoin exchange-traded funds through their subsidiaries in China’s special administrative region.
Citing a statement from China’s State Council released in September 2021, a spokesperson from Bloomberg reiterated that financial institutions are prohibited from facilitating cryptocurrency-related transactions, including account creation, fund transfers, and clearing services.
Wang further noted that Chinese investors are not expected to engage with these products in the near future, and the introduction of spot Bitcoin and Ether ETFs in Hong Kong will unlikely alter the regulatory landscape in China positively.
On the other hand, Thomas Zhu, the head of digital assets at China Asset Management, based in Hong Kong, stated that investors’ ability to purchase crypto ETFs in Hong Kong will be contingent upon the enactment of relevant regulations by the Beijing government.
Earlier reports from Bloomberg, citing Hashkey, disclosed that the first six spot exchange-traded funds based on cryptocurrencies are set to enter the Hong Kong market on April 30, 2024.