In the wake of economic rivalry between the US and China, BitMEX’s Arthur Hayes suggests that bitcoin stands to gain. He praised competition in the digital asset sector and suggested that China follow the lead of BlackRock (NYSE:BLK), a leading U.S. asset manager that recently launched an exchange-traded fund (ETF).
As part of its initiative to establish itself as a digital asset hub in the Asia-Pacific region, Hong Kong has announced plans to approve cryptocurrency-based ETFs. The move mirrors Japan’s strategy to allow retail investors access to spot ETFs, provided they meet regulatory standards.
The decision comes in response to growing demand for greater efficiency and improved customer experience through technological innovation. Julia Leung, CEO of the Securities and Futures Commission, has expressed her support for these developments. The introduction of ETFs is seen as a crucial step towards mainstreaming digital assets and could potentially fuel the growth of bitcoin.
Following the JPEX scandal, Hong Kong is strengthening its regulatory framework for virtual assets with a focus on investor protection and transparency. The city is also exploring options such as tokenization, security token offerings for professional investors, and custodial services for digital assets. Currently, it allows futures-based crypto ETFs and trading of major cryptocurrencies on licensed exchanges.
Amid economic fluctuations and central bank efforts to stabilize economies, bitcoin is emerging as a safe haven. This trend underscores the potential benefits bitcoin could reap from the ongoing economic competition between the U.S. and China.
