Is China opening up to cryptocurrencies? Hong Kong's Reactions to BTC and ETH Spot ETFs

Hong Kong clearly states that it is an Asian haven for cryptocurrencies and Web3. Of course, this does not immediately mean that China is opening up to cryptocurrencies. However, the tacit approval from mainland China regarding six Asian ETFs based on BTC and ETH is a significant signal of the awakening of the Middle Kingdom regarding digital assets.

Is China opening up to cryptocurrencies? BTC ETFs in Hong Kong manage already USD 200 million!

The Middle Kingdom is often perceived as one of the biggest opponents of cryptocurrencies. The law introduced in China banning bitcoin mining caused a mass exodus of Chinese cryptocurrency miners by Satoshi Nakamoto. However, Hong Kong pursues an autonomous monetary policy as a special administrative region of China. This has made Hong Kong an Asian haven for the cryptocurrency and Web3 industries.

This was clearly highlighted by the introduction of spot ETF funds based on the two largest cryptocurrencies on the market, i.e. BTC and ETH. According to the latest data from SoSoValue, Hong Kong BTC-based ETFs currently manage assets of nearly USD 200 million, while ETH-based ETFs control assets of approximately USD 28 million. Is this a sufficient reason to say that China is opening up to cryptocurrencies?

The Bitcoin Asia event is proving to be a huge success

On May 9-10, the Bitcoin Asia event was organized in Hong Kong, which attracted over 5,500 participants. According to event organizer David Bailey, it is estimated that more than half of the conference participants came from mainland China. Bailey adds that ETFs were a sort of admission that BTC is here and not going anywhere.

Although qualified non-Hong Kong investors can purchase ETFs, mainland Chinese residents are still prohibited from making such an investment. Will this change? There are more and more conflicting signals about whether China is opening up to cryptocurrencies. On the one hand, China wants to update its cryptocurrency law. On the other hand, they give tacit approval not only to the multi-level activity of the Web3 area, but also to the approval of spot ETFs based on BTC and ETH.