In the wake of economic rivalry between the US and China, BitMEX's Arthur Hayes suggests that Bitcoin stands to gain. He commended the competition in the digital asset sector and proposed that China follow the example of BlackRock (NYSE:BLK), a leading asset manager in the US which recently launched an exchange-traded fund (ETF).
As part of its initiative to establish itself as a hub for digital assets in the Asia-Pacific region, Hong Kong has announced plans to authorize cryptocurrency-based ETFs. This move mirrors Japan's strategy to provide retail investors with access to spot ETFs, provided they meet regulatory standards.
The decision comes in response to growing demands for increased efficiency and enhanced customer experience in technological innovation. Julia Leung, CEO of the Securities and Futures Commission, has expressed her support for these advancements. The introduction of ETFs is seen as a crucial step towards mainstreaming digital assets and could potentially drive Bitcoin's growth.
Following the JPEX scandal, Hong Kong is bolstering 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 digital-asset custodial services. Currently, it allows futures-based crypto ETFs and trading of major cryptocurrencies on licensed exchanges.
Amid economic fluctuations and efforts by central banks to stabilize economies, Bitcoin is emerging as a safe haven. This trend underscores the potential benefits that Bitcoin could reap from the ongoing economic competition between the US and China.
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