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.
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
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.
So...this means you can actually take bitcoin off the Hong Kong ETF, and take custody of it yourself?
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
Interesting. Thanks for the info.
Eric Balchunas may cool your excitement a bit:
https://x.com/EricBalchunas/status/1779867078603718970
Noteworthy news nevertheless.
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/
This is good for Bitcoin adoption.
Well, for the adoption of non-spot Bitcoin, yes.
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.
Chinas money is never good.
It always comes with attachments.
One thing still unclear to me. Will the mainland Chinese people be able to buy from the Hong Kong ETF?