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Read more: Best Bitcoin ETFs To Buy In 2024
Although approved, the Hong Kong spot Bitcoin ETF is yet to be launched, with rumors suggesting a potential debut next week.
The anticipated Hong Kong spot Bitcoin ETF’s launch is expected to stir modest interest, projecting a fund inflow of approximately $500 million. Notably, announcements from key players like China Asset Management and Bosera Capital on WeChat regarding the approval for listing spot Bitcoin and ether ETFs have surfaced prematurely. However, the official endorsement from the Securities and Futures Commission (SFC) is still pending, leaving uncertainty in the air.
While Hong Kong‘s ETF market is relatively small, standing at $50 billion, mainland Chinese investors currently lack direct access. The approved ETF issuers, including Bosera, Huatai, and CSOP, are relatively modest in scale, with major institutional players like BlackRock yet to participate.
Concerns linger over the liquidity and efficiency of the underlying ecosystem, potentially leading to significant price disparities and premium discounts.
Despite mainland China’s stringent crypto trading regulations post-2021 crackdowns, Hong Kong is positioning itself as a regulated crypto hub, aiming to rival global counterparts like Dubai and Singapore. However, the accessibility of these ETFs to mainland Chinese investors remains uncertain.
The impending launch follows the recent approval of spot Bitcoin ETFs by U.S. securities regulators, which witnessed substantial capital inflows. ETFs offer traditional investors exposure to cryptocurrency price movements without direct ownership, potentially broadening the market’s investor base.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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