FX168 Financial News Agency (Asia Pacific) Bitcoin advocate and founder of Bitgrow Lab Vivek pointed out that recent developments have shown that China's gold trading activities have increased significantly, sparking discussions about the potential impact on the cryptocurrency market, especially Bitcoin. He mentioned that China's surge in gold purchases has triggered concerns about its strategic pricing amid global economic uncertainty.
Vivek highlighted the trend on Twitter (now known as X), where he shared a chart showing that China's gold trading volume jumped from less than $1 million to more than $2 million.
Combined with the chart, Vivek speculated: "Is China buying gold at an unprecedented rate, preparing for the collapse of the US dollar?" He also tagged Bitcoin at the end of the tweet.
The observation comes as Hong Kong recently approved a Bitcoin spot ETF, which could bring new opportunities for cryptocurrency investments in the region.
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Hong Kong’s move to approve a Bitcoin spot ETF is an important step in the integration of cryptocurrencies into mainstream financial markets.
Richard Byworth, managing partner at SyzCapital, recently said these ETs may soon be open to mainland Chinese investors.
Byworth made the comments following a visit to Hong Kong, where he mentioned discussions about adding ETFs to the Shanghai-Hong Kong Stock Connect program.
The scheme is part of the broader Shanghai-Hong Kong Stock Connect program launched in 2014 to connect Hong Kong with exchanges in mainland China and could greatly expand opportunities for bitcoin investing.
The performance of these ETFs has been notable, with the Hua Xia Bitcoin Spot ETF raising $121 million on its debut. Harvest Global Investments, one of the first issuers of Bitcoin and Ethereum spot ETFs in Hong Kong, has confirmed plans to potentially open these funds to mainland investors.
“As long as everything goes well over the next two years, we do not rule out applying to have our ETF included in the connectivity program,” Harvest’s CEO mentioned at the Bitcoin Asia conference.
While the increase in Chinese gold trading activity is clear, the direct impact on Bitcoin is yet to be fully understood. Despite speculation that Bitcoin will benefit from China’s gold buying spree, the cryptocurrency faces challenges in breaking through the $67,000 resistance level.
The potential integration of a Bitcoin spot ETF with the Shanghai-Hong Kong Stock Connect could have a significant impact on the cryptocurrency market, especially given that mainland investors’ access to such products has previously been limited.
Hong Kong’s regulatory environment is more open to cryptocurrencies than mainland China, where commercial crypto activities are largely banned but individual trading and ownership remain in a legal gray area.
