According to CoinBureau, a popular YouTube channel about crypto, the recently launched Bitcoin and Ethereum ETFs in Hong Kong have the potential to cause a big impact on the crypto markets, despite their underwhelming start.
Why does CoinBureau think these Hong Kong ETFs could be market shakers? Here are the key reasons in simple terms:
Unique Investment Model 💱
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Unlike regular ETFs that use cash, these Hong Kong ETFs allow investors to buy in and cash out using actual Bitcoin and Ethereum. CoinBureau believes this “in-kind” model could attract huge demand from crypto investors who prefer holding crypto over cash.
Potential Access for Mainland Chinese Investors 🇨ðŸ‡
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There were rumors that investors from mainland China could access and invest in these Hong Kong ETFs. While this was later clarified as not being allowed currently, CoinBureau suggests that if mainland Chinese money flows into these ETFs in the future, it could be a game-changer.
Crypto-Friendly Regulators 💚
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Unlike the lengthy approval process in the US, Hong Kong regulators swiftly approved and launched these ETFs, showing a cooperative and crypto-friendly approach that could foster further innovation.
So while the launch numbers were disappointing, CoinBureau advises not to underestimate the potential impact of these unique Hong Kong ETFs. With their special features and a supportive regulatory environment, they believe these ETFs could eventually “shock the markets” by driving significant investment inflows and influencing overall market sentiment.
