Major Signals Emerge Between China and the U.S.! Mainland Chinese Investors May Open Trading Within "Two Years" - U.S. Media: Bitcoin Becomes a Key Political Agenda in the U.S. Election

Han Tongli, CEO of Jiashi Fund (Harvest Fund Management), has issued a significant announcement. Following the launch of a Bitcoin spot ETF in Hong Kong, the company may enable trading for mainland Chinese investors via the Shanghai-Hong Kong Stock Connect within two years.

U.S. media note that Bitcoin has advanced to a primary position on the U.S. political agenda, with the electoral battle starting in November and billionaire Mark Cuban issuing a serious cryptocurrency warning to President Biden.

Speaking at the Bitcoin Asia Conference in Hong Kong, Han mentioned that if all goes well, he does not rule out applying for Bitcoin and Ethereum spot ETFs under the Shanghai-Hong Kong Stock Connect program. Jiashi Fund is one of the first issuers of virtual currency spot ETFs in Hong Kong.

The ETF Connect, launched in May 2022, allows mainland investors to invest in a selected range of ETFs listed in Hong Kong. It is part of the broader Shanghai-Hong Kong Stock Connect program initiated in 2014, which initially linked the Hong Kong and Shanghai stock exchanges.

Bitcoin and Ethereum futures ETFs launched in Hong Kong in 2022 have not yet been included in the Shanghai-Hong Kong Stock Connect.

“I am optimistic that, with these regulations in place, Hong Kong could indeed find a way to become a safer, more controlled bridge for China to access Bitcoin and the broader crypto ecosystem,” noted Ben Gagnon, Chief Mining Officer at Canadian Bitfarms.

He emphasized that the Bitcoin and Ethereum spot ETFs in Hong Kong could serve as “channels for investors from mainland China.”

David Bailey, CEO of BTC Inc, which owns Bitcoin Magazine, remarked that the recently approved Bitcoin and Ethereum spot ETFs in Hong Kong are significant as they employ a "physical" redemption model, unlike the "cash creation" model used by Wall Street’s Bitcoin spot ETFs.

He also mentioned that the Bitcoin spot ETF presents a tremendous opportunity for Hong Kong.

On Tuesday (May 14), the six virtual asset spot ETFs in Hong Kong saw a trading volume of 17.2993 million Hong Kong dollars, a 30% decrease from the previous trading day. Among these, the Huaxia Bitcoin ETF (3042.HK) had a trading volume of 11.3049 million HKD, Huaxia Ethereum ETF (3046.HK) had 2.0033 million HKD, Jiashi Bitcoin ETF (3439.HK) had 1.8908 million HKD, Jiashi Ethereum ETF (3179.HK) had 0.5988 million HKD, Boshi HashKey Bitcoin ETF (3008.HK) had 0.7951 million HKD, and Boshi HashKey Ethereum ETF (3009.HK) had 0.7064 million HKD.

Recently, Wall Street's Bitcoin spot ETFs have also stagnated, with trading volumes in the U.S. Bitcoin spot ETFs falling to $7.4 billion last week from $11 billion the week before. According to CoinShares data, after four consecutive weeks of outflows, the Wall Street Bitcoin spot ETFs saw inflows last week.

Cryptocurrency analysts from Bitfinex, linked to the world's largest U.S. dollar stablecoin issuer Tether, wrote in an email report: “The fluctuating daily net inflows to the U.S. Bitcoin spot ETFs recently suggest mixed investor sentiments, indicating that prices have reached a near-term bottom.”

Forbes reported that Bitcoin prices have returned to their 2021 peaks, pushing cryptocurrencies to the forefront of the political agenda and prompting Cuban to issue a serious cryptocurrency warning to Biden.

He criticized that under Biden's leadership, SEC Chairman Gary Gensler failed to protect investors while making it nearly impossible for legitimate cryptocurrency companies to operate.

Cuban then warned that Congress needs to pass cryptocurrency registration legislation, and suggested that “lawmakers could solve this problem for Biden,” as Bitcoin and cryptocurrencies are "a cornerstone for young and independent voters."

“If Biden loses, you could very well thank Gensler and the SEC,” he added. “This election will heed the voices of cryptocurrency voters.”

Meanwhile, Republican presidential candidate Donald Trump announced last week that he will begin accepting crypto donations for his campaign.

Trump made a 180-degree shift in his stance on Bitcoin and cryptocurrencies, culminating in a statement during an event at Mar-a-Lago, telling attendees, “If you support cryptocurrencies, you better vote for Trump,” and “Democrats are very opposed to it,” after expressing his dislike for Bitcoin and cryptocurrencies in 2019.

In the short term, other Bitcoin price analysts feel pessimistic, but many remain optimistic about Bitcoin's long-term prospects.

Ledn's Chief Investment Officer, John Glover, commented in an email, “Without a catalyst to trigger a rebound, I continue to expect Bitcoin prices to drop to around $50,000.”

He added that he anticipates Bitcoin prices to subsequently climb to around $92,000 per Bitcoin thereafter.