BitMEX exchange co-founder Arthur Hayes has asserted that the ongoing economic competition between the United States and China benefits Bitcoin (BTC) as both countries vie for dominance in the global financial landscape.
Hayes expressed his views on X (formerly Twitter) today, emphasizing the positive impact of competition in the digital asset space.
“Competition is amazing. If the US has its proxy asset manager, BlackRock, launching an ETF, China needs its proxy asset manager to launch one too. The US vs. China economic war is great for BTC,” he wrote.
Hayes’ comments came in the wake of a Monday report by Bloomberg, highlighting Hong Kong’s efforts to consider allowing exchange-traded funds (ETFs) that invest directly in cryptocurrencies. As per the report, Japan is looking into providing 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 stemming from the JPEX scandal.
Julia Leung, the Chief Executive Officer of the Securities and Futures Commission, commented on these developments, stating, “We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”
Notably, ETFs have been seen as a way to bring digital assets into mainstream financial markets, with expectations that the approval of spot ETFs could further drive Bitcoin’s growth. Hong Kong and the United States currently permit futures-based crypto ETFs, though their adoption has been relatively modest.
Hong Kong has been actively working to enhance its regulatory framework for virtual assets, focusing on investor protection and transparency, following a significant fraud case involving the unlicensed JPEX crypto exchange.
Under Hong Kong’s digital-asset regime, retail investors can trade major cryptocurrencies like Bitcoin and Ether on licensed exchanges. Efforts are also underway to explore tokenization, allowing digital representations of real-world assets. The city is positioning itself to embrace different levels of tokenization for retail investors.
The removal of restrictions on security token offerings for professional investors opens the door for tokenized securities in Hong Kong. The city’s central bank is also exploring guidance for banks to offer digital-asset custodial services, which is crucial for developing a digital-asset ecosystem.
That said, as competition intensifies in the global financial landscape, with the US and China taking measures to strengthen their positions, Bitcoin is poised to continue emerging as a beneficiary of this rivalry. The 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.