China-based Businesses Show Signs of Reentry into the Crypto Market

According to data analytic firm, CryptoQuant, there are signs that China is returning to the crypto market. CryptoQuant expressed this sentiment in its most recent weekly report on the digital asset market.

The analytic firm draws the conclusion of China’s return based on recent developments around some China-based businesses. It also hinted at the growing Bitcoin (BTC) and Ethereum (ETH) reserves of the Chinese Okx crypto exchange.

CryptoQuant noted that the growth rate was not only in the crypto spot market but also in Open Interest in China-based crypto exchanges.

3/3 There are signs of China coming back to the crypto market.

– The first Bitcoin Futures ETF in China raised $79M in trading debut.
– Growing volumes in both spot and derivatives markets in @okx

Live Dashboard ?https://t.co/8grPPTBVjp pic.twitter.com/IdPBm9NrYY

— CryptoQuant.com (@cryptoquant_com) January 10, 2023

During a Web3 forum last Monday, Paul Chan, Hong Kong’s financial secretary, said the city remains committed to becoming a regional crypto hub and will work to attract new business worldwide. Chan continued:

As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates. The city’s robust regulatory framework matches international norms and standards.

Last month, the Hong Kong stock exchange asset manager, CSOP, raised nearly $79 million during its debut Bitcoin and Ethereum Futures exchange-traded funds (ETF). Notably, the CSOP Bitcoin fund was the first ETF in China.

Tim McCourt, CME Group’s Global Head of Equity and FX Products, said:

The approval of two new ETFs based on CME Bitcoin and Ether futures marks an important milestone for the digital asset ecosystem in Asia.

Previously, CSOP had launched Hong Kong’s first Metaverse ETF listed on the HK Stock Exchange in February 2022.

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