Yahya 
The just-approved Bitcoin and Ethereum Exchange-Traded Funds (ETFs) in Hong Kong have definitely opened a new chapter of green light in the financial market. Although there are many concerns about this, at the same time, concerns have arisen about the affordability and involvement of Chinese investors born on the mainland.
Expert Highlights Regulatory Hurdles for Mainland Chinese Investors
According to Eric Balchunas, an accomplished analyst of ETFs, there are a few issues that will be in the way for Chinese mainland investors. The ETF structure, bypassing direct digital asset purchases, concentrates the risks on the providers. Consequently, Balchunas expects that regulatory barriers may deter Chinese participation due to the increased stringency of the policies on virtual assets.
On the brighter side, Rebecca Sin from Bloomberg ETF analysis gives potential ETF developers an optimistic prediction about Hong Kong’s market performance. Sin is putting together a revolutionary wealth management company that mainly utilizes cryptoassets. They are thinking big, and in two years’ time, this company should be worth a billion dollars. The projection is definitely not impressive in comparison to more bold forecasts made in the past.
The success of the Bitcoin and Ethereum ETFs in Hong Kong is inextricably related to infrastructure upgrades and regulatory confirmation. Balchunas specifies that these things play a pivotal role in attracting investments and establishing the city as a premier ETF hub in Asia.
While ETF frameworks may have their subtleties, Balchunas has reserved caution with Chinese approval, basing it on actions taken against cryptocurrencies in the past. This is one of the reasons that investors from Mainland China might be reluctant for ETF investment approval processes, as China’s intermittent regulations in tailings and mining have eventually added to investment uncertainty.
The nature of the scenario still requires a close watch on Hong Kong’s ETF ecosystem, where regulation issues and the markets’ prospects are perfectly cross-bred, creating uncertainty over the future of crypto trading.