According to BlockBeats, CoinDesk cited a research report from Matrixport, saying that Bitcoin spot ETFs listed in Hong Kong are expected to attract up to $25 billion in capital inflows from Chinese investors through the Southbound Connect mechanism. The report pointed out that Chinese investors can purchase up to $70 billion of Hong Kong-listed stocks through the Southbound Connect each year, but the actual inflows in the past three years have been $15 billion to $25 billion lower than the quota. This means that there is still an idle quota of HK$100 billion to HK$200 billion (approximately $12.5 billion to $25 billion) available for Bitcoin ETF products each year.
Matrixport said that recently, Hong Kong, the world's largest offshore RMB market, has been frequently reported to approve Bitcoin ETFs. Investors in mainland China have a greater interest in diversified investments, and the continued decline in the RMB exchange rate against the US dollar has also increased the demand for risk aversion. Several mainland Chinese fund companies have applied to issue spot ETF products through their Hong Kong subsidiaries. According to Bloomberg, Hong Kong will approve Bitcoin and Ethereum spot ETFs as early as next Monday.
