Hong Kong Bitcoin ETF approval is another milestone on Bitcoin's march to $1 M \ stacker news ~bitcoin

Hong Kong Bitcoin ETF approval is another milestone on Bitcoin's march to $1 M x.com/stackhodler/status/1779788106780061971

994 sats \ 12 comments \ @dzsobacsi 15 Apr bitcoin

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21 sats \ 0 replies \ @dzsobacsi OP 15 Apr

I just saw that they are approved already! https://www.coindesk.com/policy/2024/04/15/btc-eth-rise-as-hong-kong-bitcoin-etf-applicants-say-theyve-been-approved/

44 sats \ 3 replies \ @freetx 15 Apr

An interesting aspect, is that they are allowing in-kind redemption.

I think this is huge and was the crippling blow Gary gave to US ETFs.

EDIT:

I have a side-theory that this is more focused on capturing sovereign wealth fund money rather than chinese mainland retail. The rumored Qatar $500B buy will likely happen in HK and not in USA due to the maniacal destruction of rules-based-law that US politicians have engaged in.

9 sats \ 2 replies \ @Signal312 15 Apr

So...this means you can actually take bitcoin off the Hong Kong ETF, and take custody of it yourself?

44 sats \ 1 reply \ @freetx 15 Apr

Yes, or alternatively send BTC to ETF and receive shares. The later is important if you have a 401K/IRA and want to get BTC ETF shares inside your 401k/IRA....

The US, by forbidding in-kind, intentionally creates needless taxable income transactions....I'm sure thats not a bug

10 sats \ 0 replies \ @Signal312 15 Apr

Interesting. Thanks for the info.

21 sats \ 1 reply \ @SpaceHodler 15 Apr

Eric Balchunas may cool your excitement a bit: https://x.com/EricBalchunas/status/1779867078603718970

We think they'll be lucky to get $500m. Here's why:

HK ETF mkt is tiny, only $50b, and Chinese locals cannot buy these, at least officially.

The three issuers that were approved (Bosera, China AMC, Harvest) are tiny. No big fish like BlackRock involved (yet).

The underlying ecosystem there is less liq/efficient = these etfs will likely see wide spreads and prem discounts.

The fees on these likely to be bt 1-2%. Nowhere near the dirt cheap fees in the US "Terrordome"

Noteworthy news nevertheless.

0 sats \ 0 replies \ @02bcd3eeb0 15 Apr

Being able to pull actual self-sovereign bitcoin out of them destroys all of these downsides - which all seem to amount to the same thing - the providers are small. This hardly matters if the ETF becomes big.

0 sats \ 0 replies \ @grayruby 15 Apr

Nothing burger. Eric Balchunas from Bloomberg said HK total etf market is 50B and Chinese locals can't buy them. He projects 500M in inflow.

0 sats \ 0 replies \ @Satosora 15 Apr

Chinas money is never good. It always comes with attachments.

0 sats \ 0 replies \ @dzsobacsi OP 15 Apr

One thing still unclear to me. Will the mainland Chinese people be able to buy from the Hong Kong ETF?

0 sats \ 1 reply \ @nym 15 Apr

This is good for Bitcoin adoption.

6 sats \ 0 replies \ @riberet19 15 Apr

Well, for the adoption of non-spot Bitcoin, yes.