Mainland Chinese investors are currently prohibited from purchasing Bitcoin ETFs in Hong Kong which has stirred considerable discontent among market participants. According to Jack Wang, an analyst at Bloomberg, firms like China Asset Management, Harvest Global Investments, and Bosera are unable to open this market segment to mainland investors despite establishing spot exchange-traded funds (ETFs) for Bitcoin through subsidiaries in the special administrative region of China. To understand the regulatory framework, Wang referred to a document issued by the State Council of China in September 2021, which bans any activity related to cryptocurrencies for financial institutions. This includes account creation, fund transfers, and providing clearing services for transactions involving digital assets. However, many Chinese investors are not expected to use these products. Wang notes that the introduction of spot Bitcoin and Ethereum ETFs in Hong Kong "is unlikely to positively impact the regulatory environment in mainland China." Thomas Zhu, head of digital assets at China Asset Management, suggests that the ability for investors to acquire crypto ETFs in Hong Kong depends on the Chinese government's future regulatory actions. If Beijing enacts supportive regulations, the situation could potentially favor investors. However, experts believe such a resolution remains unlikely at present. This leaves Hong Kong as a point of contention for mainland investors looking to engage with digital assets through regulated channels.