Is Hong Kong Brewing Strategic East-West War? – Crypto News

With the United States Securities and Exchange Commission (SEC) set to approve the first spot Bitcoin ETF product today, Hong Kong is notably gearing up to welcome a host of applications for Funds that offer investors the same exposure to BTC.

Per an earlier report from Coingape, the Hong Kong Securities Futures Commission (SFC) has uncovered its readiness to begin accepting applications for Bitcoin ETFs. This is a product that did not exist before, underscoring the willingness to shift grounds to meet its market liquidity goals.

Hong Kong’s Pursuit of Bitcoin ETF: The Unique Twist

Owing to its strong affiliations with mainland China, Gabor Gurbacs, the founder of PointsVille who doubles as an advisor to Tether and VanEck posits that Hong Kong cannot approve any Bitcoin ETFs without the approval from the former.

This twist is interesting considering the strong anti-crypto stance that China currently maintains, cemented with its ban on Bitcoin and other crypto-related mining in mid-2021. However, Gurbacs believes China is determined to put up competition on institutional Bitcoin embrace on its soil.

The top market analyst pointed out what is happening today which is the “full nation state adoption game theory.”

As I said many times, the East-West Bitcoin ETF competition is heating up. Hong Kong wouldn’t launch Bitcoin ETFs without China’s approval. China is determined to put up competition on institutional Bitcoin capabilities. Full nation state adoption game theory in effect. https://t.co/r5X4FaUwfc

— Gabor Gurbacs (@gaborgurbacs) January 10, 2024

China’s disdain for Bitcoin is notably not strong enough to deprive it of supporting initiatives that can attract mainstream institutional capital. Just as the United States and China are at war in terms of trade and technology, a full-blown Bitcoin ETF war is brewing with Hong Kong standing as the bridge.

Who Has the Biggest Odds for Long Term Survival?

The United States is regarded as the largest economy in the world, it by far has the biggest capital markets. While not all will embrace spot Bitcoin ETF when it finally launches as Vanguard has notably declared his stance to steer clear, reasonable capital will flow into the Bitcoin ETF market when China will have to start building its investor base after years of banning the asset.

According to Gurbacs, the United States has more history, know-how, and financial giants that are ready to jumpstart this unique product. While these sheer advantages are in place already, China, through Hong Kong might need to play serious catch-up despite opening its arms to retail Bitcoin participation last year.

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.