Mainland China Investor Will Be Able to Trade Hong Kong ETFs

Mainland Chinese traders will soon have access to Hong Kong Spot Bitcoin and Ethereum ETFs. The spot Bitcoin and Ether exchange-traded funds (ETFs) launch in the country on April 30 has opened new avenues for Asian traders.

The first week of trading for spot ETFs was lukewarm compared to their counterparts in the United States. However, Hong Kong’s proximity to China has made it a key point of discussion on whether the ETFs could be accessible to mainland China investors.

The Shenzhen-Hong Kong Stock Connect is a cross-border investment route connecting the Shenzhen Stock Exchange and the country’s Stock Exchange.

Furthermore, it is now verified that mainland Chinese traders will be able to trade the Spot crypto ETFs, which is China’s equivalent of the Shenzhen-Hong Kong Stock Connect.

Richard Byworth, managing partner at SyzCapital and BTC investor, has fueled rumors with his recent comments suggesting that Bitcoin ETFs listed in Hong Kong could soon be accessible to investors from mainland China. 

Demand for new Hong Kong Bitcoin ETFs

A lot of speculation surfaced recently about the demand for new Bitcoin ETFs. However, it’s important to note that 70% of China’s wealth is in real estate, and there are now an estimated 100 million empty homes in the country.

This has led many to suggest that the Chinese Communist Party (CCP) may need an alternative asset to mitigate social unrest. In a recent 13F filing, Monolith Management in Hong Kong reported owning $24.4 million (603,300 shares) of the BlackRock Bitcoin ETF as of March 31.

The total value of all reported assets was $252 million. IvyRock Asset Management in the country also reported owning $18.6 million (460,800 shares) of the BlackRock ETF as of March 31, for a total value of $214.9 million.

In addition, Yong Rong Asset Management reported owning 1,127,561 shares of the BlackRock ETF on May 2. As of today, three of the four largest owners of the BlackRock ETF are in the Asian nation, according to filings.

It’s also worth noting that the largest owner of the Fidelity and Bitwise ETFs is also in Hong Kong (Ovata Capital, according to its 13F filing).