Hong Kong Regulator Prepares to Approve In-Kind Spot Bitcoin ETFs

[sirty143]

Hong Kong Regulator Prepares to Approve In-Kind Spot Bitcoin ETFs

Hong Kong’s financial regulator has published rules for spot bitcoin exchange-traded fund (ETF) issuers, allowing the use of both cash and in-kind creation models. This approach contrasts with the U.S. Securities and Exchange Commission (SEC)... See more for yourself here.

Your opinion is greatly appreciated.

[Tribalchief]

Well, I guess this is indeed another great news. But it seems they are not done with accepting all the applications, i.e: more applications are to be submitted to the SFC. We are all focused on SEC's approval for now. Let's hope it goes smoothly and all applications are approved, then we will comeback to discuss this.

[defy]

good news, i believe there are already spot ETF's in existence in Europe, for example by Jacobi Asset Management and Hong Kong looking like approving one sends a message of sorts to the SEC.

There is alot of attention on the SEC purely because of the BlackRock application because they are the largest asset managers in the world. their approval will be M A S S I V E

[joniboini]

From what I understand, in-kind models basically allow existing crypto holders to switch to an ETF, or redeem their ETF to crypto at a later date. Compared to cash cash-only model, it definitely sounds more attractive since you own BTC to some extent. However, this still depends on the ability of the provider to provide a liquid converting option, if any. I believe this is attractive for those who aren't that strict with their investment and can accept the risk that their crypto is not fully in their hands. That being said, it remains to be seen if people will just buy BTC directly instead of buying ETFs from the market. CMIIW.

Personally, though, I'd rather hold my own BTC and store it somewhere safe instead of risking my existing BTC holding just to get a little more exposure to the market.