Recent statements from ETF issuers have debunked previous claims about substantial capital inflows from mainland Chinese investors into Hong Kong-based Bitcoin ETFs. These issuers have confirmed that mainland Chinese regulations prevent such investments in cryptocurrency-related ETFs.

Addressing Misconceptions

Hong Kong ETF issuers have clarified that mainland Chinese investors cannot purchase cryptocurrency ETFs, including Bitcoin, through the Southbound Stock Connect program. This contradicts earlier reports suggesting that up to US$25 billion could move from mainland China to Hong Kong Bitcoin ETFs.

China's Cryptocurrency Regulations

China's strict regulations on cryptocurrencies and related assets, such as trading and investment, extend to the Southbound Stock Connect program. This program, designed to promote cross-border investment between mainland China and Hong Kong, does not include digital currency products due to China's conservative stance on cryptocurrency risk.

Re-evaluating Market Expectations

The ETF issuers' clarification has led investors to reconsider their expectations about mainland Chinese participation in Hong Kong's Bitcoin ETFs. The regulatory restrictions' impact on cryptocurrency investment products' development is now being reassessed.

Hong Kong's ETF Market Growth

Despite the setbacks in cryptocurrency ETF investment from mainland Chinese funds, Hong Kong's ETF market continues to grow. Hong Kong Exchanges and Clearing Limited reported significant growth in the ETF sector, with average daily turnovers increasing notably.