BitMEX exchange co-founder Arthur Hayes has claimed that the ongoing economic competition between the United States and China is benefiting Bitcoin (BTC) as both countries vie for dominance in the global financial landscape.
Hayes expressed his views on X (formerly Twitter) today, highlighting the positive impact of competition in the digital asset space.
“The competition is great. If the US’s deputy asset manager, BlackRock, launches an ETF, China needs its deputy asset manager to also launch an ETF. The US-China economic war is great for BTC,” he wrote.
Hayes’ comments followed a Monday report from Bloomberg that highlighted Hong Kong’s efforts to consider allowing exchange-traded funds (ETFs) that invest directly in cryptocurrencies. According to the report, Japan is considering giving retail investors access to spot ETFs provided they meet regulatory requirements. This move aims to position Hong Kong as an Asia-Pacific hub for digital assets while addressing the challenges arising from the JPEX scandal.
Commenting on these developments, Julia Leung, Chief Executive Officer of the Securities and Futures Commission, said: “We welcome proposals that leverage innovative technologies that increase efficiency and customer experience.” We are happy to try it, provided new risks are taken into account. Our approach is consistent regardless of the asset.”
In particular, ETFs are seen as a way to bring digital assets into mainstream financial markets, with the expectation that the approval of spot ETFs could further propel Bitcoin’s growth. Hong Kong and the United States currently allow futures-based crypto ETFs, but their adoption has been relatively modest.
Hong Kong has been actively working to improve its regulatory framework for virtual assets, with a focus on investor protection and transparency, following a serious fraud case involving unlicensed crypto exchange JPEX.
Under Hong Kong’s digital asset regime, retail investors can trade major cryptocurrencies such as Bitcoin and Ether on licensed exchanges. There are also efforts to explore tokenization to enable digital representations of real-world assets. The city is preparing to enable different levels of tokenization for retail investors.
The lifting of restrictions on securities token offerings for professional investors opens the door for tokenized securities in Hong Kong. The city’s central bank is also considering guidelines for banks to offer digital asset custody services, which is crucial to the development of a digital asset ecosystem.
However, as competition in the global financial landscape heats up and the US and China take measures to strengthen their positions, Bitcoin is poised to continue to emerge as a beneficiary of this rivalry. Cryptocurrency’s role as a hedge against traditional financial uncertainties and economic fluctuations makes it a safe haven in a world where central banks may resort to printing money to stabilize their economies.
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