Hong Kong Bitcoin ETF will be small...Chinese investors won't be able to participate

Investors from mainland China are unlikely to be able to invest in Hong Kong's Bitcoin (BTC) spot exchange traded fund (ETF), Bloomberg Intelligence analysts report. China has one of the world's most restrictive stances on cryptocurrencies after banning token trading and mining in the country in 2021, according to Blockchain Coindesk on Sunday. This week, Hong Kong regulators announced the approval of ETFs that will allow new money to flow into Bitcoin. The issuers include ChinaAMC, Harvest Global, and Bosera International.

Bitcoin bulls are hoping that Hong Kong's ETF approval will be the next major catalyst for price growth. However, while the new developments in Hong Kong are certainly positive for the industry as a whole, some argue that the Hong Kong ETF market itself is not large enough for the launch to have a significant impact. "The size of the U.S. and Hong Kong ETF markets are markedly different," said Eric Balchunas, ETF analyst at Bloomberg, "and given the size difference, the combined inflows are unlikely to exceed $1 billion."