Breaking through the crypto ETF channel may be Hong Kong's way to break through

To be honest, I am not surprised at all that Hong Kong’s Bitcoin spot ETF was approved, but this time even the Ethereum spot ETF was approved, which surprised me a bit.

The future of Hong Kong depends on encryption, right? As I said, the Hong Kong government has been having a hard time recently. This time it approved the spot ETFs of Bit and Ether at once, which can be regarded as showing a certain degree of courage.

01. Ethereum can be listed on ETF, but what about other tokens?

Whether it is the United States or other parts of the world, it is now generally believed that Bitcoin is not a security.

But there is still a lot of controversy over whether Ethereum counts.

This is also the main reason for the slow advancement of the U.S. Ethereum ETF.

In the United States, the SEC only has jurisdiction over securities. In fact, it is completely possible to "set aside disputes and jointly develop"

If a cryptocurrency is a security, it can It is governed by the SEC; if it is not a security, can it not be governed by you through the ETF model?

The Hong Kong Securities Regulatory Commission deeply understood this logic, so it boldly approved the Ethereum ETF.

According to this logic, more types of crypto ETFs are just around the corner.

After all, Ethereum is currently facing internal and external troubles. Ecosystems such as Cosmos/Solana are fierce outside, and internal L2 public chains are also divided among princes.

I don’t know how helpful V God’s visit to Hong Kong will be in promoting the Ethereum spot ETF, but the Ethereum spot was approved and came to Hong Kong under the same common law framework. It is said that it will be difficult to reject ETFs of other public chain tokens later.

02. Hong Kong is still good at being a channel

The total population of Hong Kong is only a few million, and it is almost impossible to survive relying on the local market.

But to be honest, I am actually more optimistic about Hong Kong’s crypto ETF strategy.

Due to jurisdictional issues, the United States is expected to continue to quarrel within three years. Currently, institutions have two options if they want to invest in encryption:

1) Find a partner Open an account on a regulated exchange

2) Purchase through crypto ETF

The first method seems very simple, but it is still quite complicated at the actual operation level of the institution:

• Many institutions still don’t trust exchanges, especially FTX, an exchange with thick eyebrows and big eyes. It has only been less than two years since the thunderstorm.
• People in institutions are very lazy, learn to be more aware. It's okay, but if you really need to operate it, the threshold is quite high.

The second way of using ETF is different. It's still a familiar platform, familiar upstream and downstream, but it's just a different one. underlying assets.

The world is so magical~

Hong Kong should give full play to its institutional advantages and introduce ETFs for mainstream cryptocurrencies as soon as possible, and even open funds Manager DIY Portfolio.

Under the current rules in Hong Kong, the money earned is not just the management fees of ETFs, but downstream licensed and compliant exchanges may also rely on this to develop their business.

03. It has nothing to do with ordinary mainlanders

Friends in mainland China, don’t think too much. As retail investors (leeks), you must have the consciousness of retail investors.

We must learn to examine ourselves in three ways:

1) Can I buy US/Hong Kong stocks?

2) Can I buy the US Bitcoin Spot ETF?

3) Can you open an account at a compliant exchange in Hong Kong?

Of course I believe that many of my readers can do the above three things, but generally such people do not need ETFs to allocate crypto assets.

But in the past, there were no exchanges like Binance/OKX, or even a US/Hong Kong stock account. If you imagine that after the Hong Kong ETF is approved, you can freely allocate crypto assets, then you really have imagination.

Although Hong Kong is our window to the outside world, we mainly want foreign money to come in and Chinese goods or services to go out.

It can be considered as a semiconductor channel~

Partner of Cutie Labs, self-operated IP encryption is beautiful

1783DAO Core Builder

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