Bitcoin’s recent rise to $65,000 has led to more money flowing into Hong Kong’s Bitcoin ETFs, showing that investors are becoming more interested despite economic challenges.
Since their launch in January, U.S. Bitcoin ETFs have been very successful, bringing in over $58 billion. This shows that Bitcoin is becoming more accepted in mainstream finance.
Hong Kong started its own Bitcoin ETFs in April, hoping to achieve similar success. Although the initial response was not as strong, the latest Bitcoin surge has led to the highest inflows into Hong Kong’s Bitcoin ETFs since mid-July.
Hong Kong Bitcoin ETFs see surge in inflows as prices climb
Last week, Bitcoin soared to a 24-day high, reaching over $65,000, thanks to hopes of potential U.S. interest rate cuts improving market sentiment. This rebound came after a tough start in August when worries about the yen carry trade caused a big drop in Bitcoin’s price.
U.S. Bitcoin ETFs, which started in January, have been a huge hit, pulling in over $58 billion. This success highlights Bitcoin’s increasing acceptance in mainstream finance.
Hong Kong launched its Bitcoin ETFs in April, hoping to follow the U.S. lead. Although initial interest was low, Hong Kong’s Bitcoin ETFs experienced their biggest inflows since mid-July as Bitcoin prices rose last week.
China may revisit crypto ETF limits
Even though mainland Chinese investors can’t currently buy into Hong Kong’s crypto ETFs, there’s ongoing speculation that this could change. ETF provider Harvest is pushing for these ETFs to be included in Stock Connect, which links the Shanghai and Hong Kong stock exchanges.
It is also important to note that there are rumors that China may no longer enforce its 2021 crypto restrictions. Justin Sun, Tron’s founder, has urged the Chinese authorities to reconsider such measures and propose an alternative form of regulation.
According to Sun, China’s policy needs to be updated so that the country can remain competitive in the international financial market given the fact that the United States is fast rising in the crypto space.
