Matrixport: Hong Kong Bitcoin Spot ETF Expected to Attract $25 Billion in Capital Inflow from Mainland China

ChainCatcher news, according to a research report released by the cryptocurrency asset service provider Matrixport, the Bitcoin spot ETF listed in Hong Kong is expected to attract up to $25 billion in capital inflow from mainland Chinese investors through the "Southbound Trading" mechanism.

The report points out that Chinese investors can purchase up to $70 billion in Hong Kong-listed stocks annually through Southbound Trading, but the actual inflow over the past three years has been $15 billion to $25 billion lower than the quota. This means there is still an idle quota of HKD 100 billion to 200 billion (approximately $12.5 billion to $25 billion) available for Bitcoin ETF products each year.

Matrixport stated that recent news has frequently emerged regarding the approval of Bitcoin ETFs in Hong Kong, the largest offshore RMB market globally, and mainland Chinese investors have a significant interest in diversified investments. The continuous depreciation of the RMB against the USD has also increased the demand for hedging. Industry insiders in Hong Kong revealed that several mainland Chinese fund companies have already applied to issue spot ETF products through their subsidiaries in Hong Kong.