Senior Bloomberg ETF analyst Eric Balchunas believes that the recently approved spot Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong may not have as significant an impact as some anticipate.
Balchunas concludes that while the addition of Bitcoin ETFs in other countries is positive, it pales in comparison to the influence of the US market.
Jamie Coutts, chief crypto analyst at Real Vision, suggests that despite reservations about the size of the Hong Kong ETF market, the products could still tap into a substantial pool of capital from Chinese investors, who are adept at circumventing government capital controls.
The Hong Kong ETFs will utilize an in-kind creation model, allowing new ETF shares to be issued directly using Bitcoin and Ether. This differs from the cash-create redemption model used in the US, which the SEC has concerns about regarding money laundering and fraud. The spot ETFs are expected to launch in approximately two weeks.
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