The introduction of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong marks a significant moment, but will not offer new investment opportunities for those in mainland China, as clarified by Bloomberg data analyst Jack Wang.

This development follows Hong Kong’s approval of BTC and ETH ETFs, leading Chinese asset management firms — China Asset Management, Harvest Global Investments and Bosera — to prepare to launch their crypto ETFs by the 30th. April, through its subsidiaries in the region.

The close ties of these issuers with mainland China do not, however, represent a bridge for these investors. “Mainland Chinese citizens will not be able to participate in this,” Wang declared during a webinar on April 24. The restriction is due to a directive from the Chinese State Council, imposed in September 2021, which prohibits financial institutions from participating in cryptocurrency-related transactions.

Furthermore, attempts to trade ETFs based on futures, also listed in Hong Kong, encountered barriers. “Even for the futures-based crypto ETF listed in Hong Kong – in fact, I tried to establish a trade – the brokers will simply directly reject the trade,” commented Wang, highlighting the direct exclusion of Chinese investors from this market.

The analyst emphasized that the new offering of Bitcoin and Ether ETFs in Hong Kong will not lead to changes in mainland China regulation or open up the cryptocurrency market to Chinese investors. “I would say at least 100% it won’t happen,” Wang said. On the other hand, Thomas Zhu, head of digital assets at China Asset Management, mentioned the possibility, albeit conditional, that investors from mainland China could eventually acquire these ETFs, depending on future regulatory adjustments.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.


Leave a Reply