Hong Kong Virtual Asset ETF officially opened on April 30
What are the differences between the US spot Bitcoin ETF and the Hong Kong Bitcoin ETF? What are the advantages of Hong Kong?
The first is the unique physical subscription and redemption mechanism:
Hong Kong allows investors to use Bitcoin or Ethereum spot to subscribe or redeem ETF shares, while the United States only supports cash transactions. This mechanism attracts traditional crypto investors, such as Bitcoin miners, as well as investors who have demand for physical assets.
The second is to cover a wider range of investors:
Hong Kong is one of the first jurisdictions in the world to allow retail investors to participate in Ethereum spot ETF transactions, attracting investors from Asia, Europe and North America. At the same time, since Hong Kong's trading hours are different from those in the United States, it also attracts some investors active in the Asian time zone.
The third is more accurate price tracking:
Hong Kong spot Bitcoin ETF directly holds Bitcoin, rather than futures contracts, and can more accurately track the actual market price of Bitcoin. In contrast, the US futures Bitcoin ETF is affected by rolling costs, and the tracking deviation may be as high as 60%, which harms investor returns.
The fourth is the potential scale transfer:
Hong Kong Futures Bitcoin ETF has a certain scale, and investors may transfer part of their funds to the spot ETF, further increasing the trading volume and liquidity of the spot ETF.
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