Bitcoin has been on a wild ride to new record highs in the U.S. due to the growing anticipation for spot-based bitcoin ETFs. Now, there’s news that similar funds might get approval in Hong Kong, which could also shake things up in the crypto world.

Potential for Chinese Investors

These new funds might attract a lot of attention from Chinese investors. They’ve been looking for safe places to put their money, beyond traditional options like gold or property.

Insights from Experts

Noelle Acheson, a macro analyst, thinks these ETFs could be a game-changer. They’ll not only attract investors and offices in the region but also open doors for mainland investors.

Why Chinese Investors are Eyeing Alternatives

China’s housing market and stock sector have had some problems lately, making investors wary. This has led many to consider other options like gold. In fact, trading with a gold-linked ETF in China was stopped recently because too many people were buying, driving the price up.

Bitcoin: A New Haven?

According to Acheson, bitcoin could see a big influx of money from Chinese investors. If worries about the Chinese currency losing value increase, more people might turn to bitcoin as a safer bet.

Government’s Perspective

The Chinese government is probably aware that many citizens want to invest in hard assets like gold or bitcoin. They might prefer that people invest in things not tied to the U.S. economy.

Potential for a Bitcoin Boom

Markus Thielen, from 10x Research, believes that if these ETFs get approved, it could trigger a buying frenzy in China, like what happened in 2013. Back then, bitcoin’s price soared from $10 to over $1,000 before the government stepped in.

Challenges Ahead

Even though ETF approval could be great for bitcoin, don’t expect it to be as huge as in the U.S. According to Vetle Lunde, from K33 Research, the two bitcoin ETFs in Hong Kong are still quite small compared to those in the U.S.

Conclusion

While there’s a lot of excitement about potential ETFs in the U.S. and Hong Kong, it’s important to keep expectations realistic. It might not cause as big of a splash in Hong Kong as it did in the U.S., but it’s still something worth keeping an eye on.