The Bitcoin Asia conference in Hong Kong attracted a significant crowd from mainland China this year, indicating a growing interest in bitcoin in the region. Organizers reported around 5,500 attendees for the two-day event, with around half coming from mainland China.
Launch of Hong Kong Bitcoin spot exchange-traded funds (ETFs) could have been the main driver for this large crowd, hinting at possible developments in China Bitcoin sphere.
The conference’s international appeal was evident, with attendees from various countries showing up for the event.
Many participants expressed optimism about Hong Kong’s supportive policies toward the Bitcoin industry, hoping it could pave the way for tapping into investors in mainland China, despite commercial Bitcoin trading being banned there.
Ben Gagnon, chief mining officer at Bitfarms, sees Hong Kong as a potential bridge to connect China with the broader digital asset ecosystem, possibly mitigating the impact of economic downturns. He stated:
“What I’m optimistic about is, with these rules and these regulations now in place, Hong Kong actually may find a way to be this bridge for China to bitcoin and to the greater crypto ecosystem in a way that’s more safe, more controlled or regulated.”
The surge in bitcoin’s price this year has also driven interest in layer 2 solutions, with Chinese developers showcasing their projects at the Bitcoin Asia conference.
Role of Hong Kong Bitcoin ETFs
David Bailey, CEO of BTC Inc., highlighted the significance of Hong Kong’s ETFs, viewing them as a clear indication of Bitcoin’s legitimacy and acceptance in the region. He stated:
“I think the ETFs were kind of an admission that bitcoin is here to stay. There’s no way that Hong Kong just accidentally stumbled into launching an ETF … It wasn’t random.”
Interestingly, the acceptance of in-kind subscriptions for these ETFs, allowing purchases with bitcoin, has been particularly lauded by participants. This feature enables investors to use ETF shares as collateral for loans, further integrating the digital asset into traditional finance.
David Bailey noted the explosion of innovation in the Bitcoin space, emphasizing the need for scalability to accommodate a wider user base. While optimistic about the future, he cautioned that the industry is still in its early stages, likening it to the “wild west” but on Bitcoin’s layer 2.
The Hong Kong government’s support for the Bitcoin Conference and its push to host Web3-related events reflect its recognition of Bitcoin as a massive opportunity for the region.
While Bitcoin Asia is smaller than its US counterpart, the turnout exceeded expectations, prompting discussions about returning to Hong Kong next year. Alex McShane, director of programming for the Bitcoin Conference, stated that Tokyo and Singapore are also options for future Asia events.
Overall, the Bitcoin Asia conference highlighted the growing enthusiasm for bitcoin in the region and the potential for Hong Kong to emerge as a significant player in the global bitcoin market.
The industry’s interest in China, once a major center of Bitcoin activity, hasn’t waned. Despite the authorities’ crackdown on Bitcoin mining in 2021, there’s hope that Hong Kong could serve as a conduit for Chinese investors to access Bitcoin-related technologies.
