Hong Kong’s New Spot Bitcoin ETFs Attract Investors from Mainland China

Author: CoinSense

The Bitcoin Asia 2024 conference in Hong Kong attracted a large crowd of enthusiasts and especially investors from mainland China.

According to a recent report by the South China Morning Post, the organizer estimated that out of the 5,500 people who confirmed their attendance before the event, about half came from the country’s mainland.

Hong Kong Bitcoin ETFs Appeal to Mainland Attendees

The conference, organized by Bitcoin Magazine, aimed to showcase the evolving landscape of cryptocurrency investments in Asia. It featured discussions centered around the implementation and implications of the new spot Bitcoin exchange-traded funds (ETFs) launched in Hong Kong.

The HKEX launched Bitcoin and Ethereum ETFs on April 30, marking the first spot virtual asset ETFs in Asia.

David Bailey, co-founder of Bitcoin Magazine, emphasized the event’s role in bridging Hong Kong’s emerging crypto economy with the mainland’s restrictive regulatory environment.

“I think the ETFs were kind of an admission that Bitcoin is here to stay,” said Bailey. “There’s no way that Hong Kong just accidentally stumbled into launching an ETF … It wasn’t random.”

Bailey also stated that the local government has shown strong support for the sector and the company is already considering returning to the SAR. The city has hosted several web3 events this year, including the WOW Summit and Web3 Festival.

“I think they see Bitcoin as a massive opportunity for Hong Kong,” said Bailey.

Regulated Bitcoin Trading Offers New Investment Options

Ben Gagnon, Chief Mining Officer of Bitfarms, expressed hope that Hong Kong could serve as a “conduit for Chinese investors” to access Bitcoin-related technologies. He views this as a potential way to mitigate the market downturn in China.

“What I’m optimistic about is, with these rules and these regulations now in place, Hong Kong actually may find a way to be this bridge for China to Bitcoin and to the greater crypto ecosystem in a way that’s more safe, more controlled or regulated,” said Gagnon.

“I hope that there’s going to be more pathways into mainland China,” Gagnon added.