Connect with us


Bitcoin and Ethereum ETFs in Hong Kong a harbinger for all of China?

China’s cryptocurrency ban since 2021 contrasts with Hong Kong’s recent launch of Bitcoin and Ethereum ETFs, sparking speculation about a potential policy shift. At the Bitcoin Asia conference, optimism about China’s crypto future grew as many participants hailed from mainland China. Hong Kong’s crypto activities may signal Beijing’s willingness to reconsider its strict stance.




China has been implementing a ban on cryptocurrencies since 2021. That’s why the start of trading in Bitcoin and Ethereum ETFs in the Hong Kong special zone made headlines. Will mainland China now reconsider its position?

Bitcoin and Ethereum ETFs have been traded on the Hong Kong Stock Exchange since the end of April

This follows developments in the USA, where Bitcoin ETFs have been causing a sensation since their launch in January. But Hong Kong, as a special zone in China, is a special trading center, because in 2021 Beijing announced a general ban on crypto and is at least partially implementing it. At the Bitcoin Asia conference in Hong Kong, much of the discussion revolved around future prospects for crypto across China, as the South China Morning Post reports.

The Bitcoin conference in Hong Kong attracted around 5,500 participants and the organizers estimate that around half came from mainland China. Chief organizer David Bailey said the Bitcoin ETFs in Hong Kong were an indication of a tactical rethink in Beijing. Hong Kong certainly would not have launched Bitcoin and Ethereum ETFs without the knowledge and consent of Beijing. According to the report, other conference participants were also optimistic that China wanted to reopen Hong Kong to the crypto industry. A first step, for example, could be that mainland Chinese are also allowed to invest in Bitcoin ETFs in Hong Kong.

It is unclear to what extent the crypto ban is being followed in China. Bitcoin miners remained active even after the ban, and the Wall Street Journal estimated in August 2023 that the world’s largest crypto exchange Binance continued to generate tens of billions of dollars from offerings in China. The Bitcoin Asia Conference can now imagine organizing its event in Hong Kong next year as well.

Conclusion: Hong Kong on the way to becoming the crypto center of China

At a good $200 million, investments in Bitcoin and Ethereum ETFs in Hong Kong have so far remained within the expected range. One difference from Bitcoin ETFs in the USA is that you can also pay with BTC or Ethereum. Optimists are now hoping that Beijing will also establish rules for crypto outside of Hong Kong that will help the crypto industry out of the legal gray area.

Because a Bitcoin boom in China could send the global crypto markets into positive territory, capital is available on a large scale in the “Middle Kingdom”. Seen in this way, the Bitcoin ETFs in Hong Kong would be a sign of a China that can hardly afford to lag behind global trends when it comes to crypto.


(Featured image by amhnasim via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us

Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.