Cryptocurrency Q&A
Are Hong Kong's new bitcoin & ETH exchange-traded funds a big deal?
Are Hong Kong's new bitcoin & ETH exchange-traded funds a big deal?
KatanaBlade
Sat Sep 28 2024
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6 answers
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Could you elaborate on why Hong Kong's introduction of bitcoin and Ethereum exchange-traded funds (ETFs) is considered a significant development in the cryptocurrency and finance industry? How do these ETFs differ from traditional investments, and what impact might they have on the market, both locally and globally? Additionally, what are the potential risks and benefits associated with investing in these ETFs, and how should investors approach them with caution?
6 answers
Raffaele
Mon Sep 30 2024
Eric Balchunas, a senior Bloomberg ETF analyst, has offered a cautious perspective on the significance of these new ETFs.
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Elena
Mon Sep 30 2024
While the approval of these ETFs marks a milestone for the cryptocurrency market in Hong Kong, Balchunas suggests that their impact may not be as substantial as some might expect.
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Stefano
Mon Sep 30 2024
One reason for this is that the new ETFs are spot-based, meaning they track the current market price of BTC and ETH rather than being based on futures contracts.
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CryptoPioneer
Mon Sep 30 2024
The introduction of three new Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) in Hong Kong has garnered significant attention, but a closer look reveals a more nuanced picture.
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Eleonora
Mon Sep 30 2024
Spot-based ETFs have limitations in terms of their ability to generate alpha, which is a measure of outperformance relative to a benchmark.
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