China’s Bitcoin ETF has hit a $150,000 price target

The opening of Hong Kong's bitcoin exchange-traded funds (ETFs) to mainland Chinese investors has sparked much excitement and speculation in the cryptocurrency market.

On April 30, Hong Kong launched a spot bitcoin and ethereum ETF, marking a major development for crypto trading in Asia. Although the initial transaction volume was modest, Hong Kong's geographic and economic proximity to China opened up the prospect of cross-border crypto investments.

Will China Enable Access to Bitcoin ETFs?

Richard Byworth, Managing Partner at SizCapital and a prominent Bitcoin investor, recently hinted at a critical development. In a conversation with Samson Mou on social media platform X (formerly Twitter), Byworth mentioned ongoing discussions about including a Bitcoin ETF position in the StockConnect program.

This program, which includes the Shenzhen-Hong Kong and Shanghai-Hong Kong stock links, facilitates cross-border trade. It allows investors to use local brokers and clearing houses to find stocks in the market with each other.

“I just returned from Hong Kong. There is talk that an ETF may be added to the Stock Connection. The implications of this are absolutely huge. [It] “Basically mainland money can buy it,” Byworth said.

Despite China's strict anti-crypto policies, Byworth's comments have reignited hope. SmashFi co-founder and COO Brian HoonJong Paik echoed this sentiment. He highlighted the importance of alternative assets in China against the backdrop of real estate challenges.

Pike pointed out that with significant capital locked up in underutilized real estate, the Chinese Communist Party may look good on accessible investment diversifiers such as Bitcoin ETFs.

“[The] Hong Kong stock market [is] One of the most accessible overseas markets for Chinese investors, promoting financial integration between the Mainland and Hong Kong. Not just the Bitcoin ETF, but it could have a significant effect among institutional and retail investors in China and Hong Kong, Pike said.

Adding to the optimism, Bernstein analysts have reinforced their bullish stance on Bitcoin price forecasts. Although it recently touched $57,000, Bernstein analysts Gautam Chugani and Mahika Sapra predict that bitcoin could reach $150,000 by the end of 2025.

Analysts cite strong inflows into US bitcoin ETFs and favorable market conditions after the divestment.

“We feel much better about that call and BTC metrics indicate a healthy cycle, still in the early stages. Risk premium will continue to be attractive here,” the analysts wrote.

Read more: Bitcoin price prediction for 2024/2025/2030

A combination of potential regulatory reform in China, strategic financial moves in Hong Kong and positive market analysis from experts point to higher upside for Bitcoin. As major investors eye the ETF market in Hong Kong, the crypto market is set to witness significant changes.