Breaking through the crypto ETF may be Hong Kong’s way out

To be honest, I am not surprised at all that the Bitcoin spot ETF in Hong Kong was approved, but I am a little surprised that even the Ethereum spot ETF was approved this time.

The future of Hong Kong depends on encryption, right? As I said, the Hong Kong government has not had a good time recently. This time, the one-time approval of the spot ETFs for Bitcoin and Ethereum can be regarded as a demonstration of certain courage.

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

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

But there are still many controversies about whether Ethereum is a security.

This is also the main reason why the Ethereum ETF in the United States is slow to advance.

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

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

The Hong Kong Securities and Futures 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 now facing internal and external troubles. The Cosmos/Solana ecosystem is aggressive outside, and the various L2 public chains inside are also divided.

I don’t know how much help Vitalik’s visit to Hong Kong will help promote the Ethereum spot ETF, but Ethereum spot has been approved. For Hong Kong, which is also under the common law framework, it will be difficult to reject ETFs for other public chain tokens in the future.

Hong Kong is still good at being a channel

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

But to be honest, I am more optimistic about the strategy of Hong Kong's crypto ETF.

Because of the jurisdiction issue in the United States, it is estimated that the dispute will continue within three years. At present, institutions have two options if they want to invest in crypto:

1) Open an account at a compliant exchange

2) Purchase through a crypto ETF

The first method looks simple, but it is still quite complicated at the institutional practical level:

• Many institutions still do not trust exchanges, especially FTX, an exchange with a big name, which has only been undermined for less than two years

• People in institutions are very lazy. It’s okay to learn some knowledge, but the threshold for operation is still quite high

The second ETF method is different. It’s still a familiar platform and familiar upstream and downstream, but with a different underlying asset.

This world is so magical~

Hong Kong should give full play to its institutional advantages and put all mainstream cryptocurrencies into ETFs as soon as possible, and even allow fund managers to DIY portfolios.

Under the current rules of Hong Kong, the money earned is not just the management fee of the ETF. The downstream licensed and compliant exchanges may also rely on this to conduct business.

It has nothing to do with ordinary mainlanders

Friends in the mainland should not think too much. As retail investors (leeks), they must have the consciousness of retail investors.

You must learn to reflect on yourself:

1) Can you buy US/Hong Kong stocks?

2) Can you buy the US Bitcoin spot ETF?

3) Can you open an account in 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 configure crypto assets.

However, those who have not even opened exchanges such as Binance/OKX in the past, and even US/Hong Kong stock accounts, imagine that they can freely configure crypto assets after the Hong Kong ETF is passed, then you are really imaginative.

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

It can be considered a semiconductor channel~