In a stark contrast between the U.S. and Hong Kong crypto markets, U.S. digital asset products saw significant inflows of $4.36 billion last week, compared to only $14.1 million in Hong Kong's crypto ETFs. This disparity reflects a broader attitude, as investors in Hong Kong continue to favor traditional assets, seeing crypto as a niche investment. Despite the demand for exchange-traded products in Hong Kong, most capital has been directed towards equity-focused funds. However, there is potential for change, as a proposed regulatory framework could permit mainland Chinese investors access to Hong Kong's crypto ETFs. Yifan He, CEO of Red Date Technology, suggested adapting existing programs to allow Chinese investors indirect exposure to crypto markets. If implemented, this could significantly alter investment dynamics in the region and increase participation in Hong Kong's crypto ETFs, which have struggled to gain traction despite regulatory clarity. For now, U.S. dominance in crypto fund flows remains unchallenged, but future changes could reshape the landscape.

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