Hong Kong-based Bitcoin ETF issuers have clarified that mainland Chinese investors cannot participate in these investments due to regulatory barriers.

Recent statements from ETF issuers in Hong Kong have debunked previous speculations about mainland Chinese investors pouring capital into Hong Kong's Bitcoin ETFs. These issuers have confirmed that mainland Chinese funds are forbidden from investing in cryptocurrency-related ETFs due to regulatory restrictions.

Matrixport's earlier report predicted that up to US$25 billion could flow from mainland China to Bitcoin ETFs in Hong Kong. However, this projection has been contradicted by several issuers who have clarified that mainland Chinese investors are currently not permitted to buy ETFs for cryptocurrencies, including Bitcoin.

China's conservative stance on cryptocurrencies has resulted in stringent regulations on cryptocurrencies and associated assets, such as trading and investment. The Southbound Stock Connect program, which facilitates cross-border investment between mainland China and Hong Kong, does not include digital currency products due to China's cautious approach to cryptocurrency risk.

The clarification from ETF issuers has prompted a reassessment of market expectations regarding the potential for mainland Chinese investors to participate in Bitcoin ETFs in Hong Kong. Investors who had anticipated broader market participation are now reconsidering the impact of regulatory constraints on the development of cryptocurrency investment products in the region.

Meanwhile, Hong Kong's ETF market is growing, with new products and increased trading volumes observed in recent months. Hong Kong Exchanges and Clearing Limited reported significant growth in the ETF sector, with average daily turnovers reaching notable figures. This expansion indicates a healthy development of Hong Kong's financial markets, attracting diverse international investments, although mainland Chinese capital is noticeably absent in the cryptocurrency sector.