**BitMEX Co-founder: US-China Competition Benefits bitcoin as Hedge Against Uncertainties**
*Image: BitMEX co-founder Arthur Hayes believes that the ongoing economic competition between the United States and China is beneficial for bitcoin. As both countries vie for dominance in the global financial landscape, bitcoin serves as a hedge against uncertainties and economic fluctuations.*
bitcoin (BTC) is benefiting from the ongoing economic competition between the United States and China, according to BitMEX exchange co-founder Arthur Hayes. Hayes believes that the rivalry between the two countries is positive for bitcoin, as they both strive to assert their dominance in the global financial market.
Hayes made these observations on X (formerly Twitter), emphasizing the positive impact of competition in the digital asset space. He stated, “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.”
These comments from Hayes come after a Bloomberg report highlighted Hong Kong’s efforts to consider allowing exchange-traded funds (ETFs) that invest directly in cryptocurrencies. Meanwhile, Japan is looking into providing retail investors access to spot ETFs, subject to regulatory requirements. This move aims to position Hong Kong as an Asia-Pacific hub for digital assets and address challenges arising from the JPEX scandal.
Julia Leung, the Chief Executive Officer of the Securities and Futures Commission, expressed her support for 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.”
ETFs have long been considered a vehicle to bring digital assets into mainstream financial markets. Approval of spot ETFs could have a significant impact on bitcoin‘s growth. Currently, Hong Kong and the US only permit futures-based crypto ETFs, and their adoption has been relatively modest.
Hong Kong has been actively enhancing its regulatory framework for virtual assets, with a particular focus on investor protection and transparency following the JPEX fraud case. Retail investors in Hong Kong can trade major cryptocurrencies like bitcoin and Ether on licensed exchanges, and the city is exploring tokenization for retail investors. Efforts are also underway to remove restrictions on security token offerings for professional investors. Additionally, the city’s central bank is exploring guidance for banks to offer digital-asset custodial services, which is crucial for the development of a digital-asset ecosystem.
As the US-China rivalry intensifies in the global financial landscape, bitcoin is positioned to benefit from this competition. Its 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.
### News source: zycrypto.com