It Looks Like China is Warming up to the Idea of Bitcoin ETFs…

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Whereas the US slowly figures issues out within the courtroom (see earlier article), there’ve been some attention-grabbing murmurings about China letting its residents spend money on Hong Kong’s BTC ETFs.

With the intention to perceive how they plan to do this, we first want to grasp how a bit factor referred to as ‘Inventory Join’ works.

Inventory Join lets certified buyers from one market (China on this case) to entry eligible shares in one other market (like Hong Kong), so long as they buy a certain quantity (however not an excessive amount of).

Confused? We acquired you.

Proper now, the Shenzhen-Hong Kong Inventory Join connects the Shenzhen Inventory Trade with the Hong Kong Inventory Trade, permitting sure buyers to buy sure shares which might be solely accessible on the Shenzhen Inventory Trade (and vice versa).

Roughly one week in the past, the Hong Kong Inventory Trade listed its first BTC ETFs.

And whereas an enormous flood of cash wasn’t poured in initially, these inventory join rumors would make their approvals extra necessary than we first thought.

Not solely is the Shenzhen Inventory Trade market cap greater than Hong Kong’s, nevertheless it may open the floodgates for the opposite two big inventory exchanges (Shaghai and Beijing) to commerce BTC by means of ETFs.

Earlier than we get too enthusiastic about this it’s necessary to notice that to date these are simply rumors.

However boy is it a turnaround from when China banned Bitcoin mining and overseas crypto exchanges from providing their companies to mainland prospects in 2021.

Let’s see how issues pan out.