BTC Spot ETF Magic Begins to Appear Pension Funds Are Getting In, Too

BTC spot ETF pending in the U.S., Hong Kong can not wait. December 22, the Hong Kong Securities and Futures Commission issued four consecutive circulars, the most important is to announce that it will approve the virtual asset spot ETF.

OldMoney’s irresistible “aphrodisiac”
The U.S. BTC spot ETF is pending, Hong Kong can’t wait.On December 22, the Hong Kong Securities and Futures Commission issued four circulars in a row, the most important is to announce that it will approve the virtual asset spot ETF.

BTC spot ETF is the crypto world’s most coveted aphrodisiac. Every time it has been discussed in history alone, it has led to a series of market orgasms. Now, Hong Kong is going to open the bottle of this potent medicine, framing the world’s best-performing financial assets of the past decade in an ETF, which will inevitably attract Old Money, which has long been eager to think about it.

BTC Spot ETF Magic Begins, Pension Funds Also Want to Enter

Many traditional funds have long coveted the body of bitcoin, but the risk is too high, there is no compliant entry channels, can only look at the bitcoin towering straight up, which is really not a good taste, so some organizations can only enter the can not come out, but also to give the money to the grayscale to buy BTC; and there are even more eye on the listed company Microstrategy, which is a long position in the pokies BTC, wildly buy its shares, and indirectly kiss the BTC. BTC.

Although the Chicago Mercantile Exchange has long been listed on the bitcoin futures ETF, Hong Kong also has a futures ETF launched by the South East British, but the pressure can not quench the thirst of the old consortium. After all, the vast majority of public funds can not speculate in futures, investment list can not be added to the list of high-risk assets such as BTC options. But the spot ETF is different, whether it is public equity, private equity funds, spot ETF is a regular investment target, never mind whether it is loaded with BTC or gold, all can be out.

Hundreds of billions of dollars of incremental volume to bring double the rate of increase
With Hong Kong and the United States to liberalize the bitcoin spot ETF, BTC ETF will directly land in the traditional securities market, funds, family offices, listed companies do not need to modify the scope of investment, you can be in the customary securities software configuration BTC. and in the market of high-quality asset scarcity, bitcoin as the most red, the hottest new assets, enough to rely on the ETF this “spring medicine Bitcoin, as the hottest and most popular new asset in the market, is able to rely on the “aphrodisiac” of ETFs to become the top of the list of new investment targets.

U.S. 401(k) pensions have already jumped on the bandwagon. Steven T. Larsen, founder of Columbia Consulting in Spokane, Washington, said that once the U.S. SEC gives the nod to the Bitcoin Spot ETF, more companies will decide to offer Bitcoin ETFs in their 401(k) product lineups.

BTC Spot ETF Magic Begins, and Pension Funds Are Getting Into the Game

The crypto market is poised for a huge incremental increase once huge funds like pension funds enter the market. Looking at the U.S. market alone, the current 14 spot Bitcoin ETF applicants have a total AUM of $14 trillion, and even 1% of these funds entering the market could bring in hundreds of billions of dollars of new money. And 401(k) pension scale of more than $7 trillion, also expected to bring tens of billions of dollars of funds.

Look at the Hong Kong market, the Hong Kong Stock Exchange market size of nearly 5 trillion U.S. dollars, many in Hong Kong, large-scale asset management institutions AUM amounted to hundreds of billions of U.S. dollars, in the Hong Kong Securities and Futures Commission is trying hard to develop the background of the Web3, investment in BTC spot ETF will become an important option for the asset management institutions, tens of billions of U.S. dollars of level of funds may be flooded into the BTC ETF.

It is expected that after a few years, hundreds of billions of dollars of global funds will be injected into the BTC spot ETF, the current BTC market capitalization of more than $800 billion, and more than half of them are mastered by long-term holders, the market liquidity is limited, hundreds of billions of dollars of level of funds into the BTC is expected to quickly double again.

Who can get on the “poker table?”
The huge potential scale of virtual asset spot ETFs will undoubtedly provide huge opportunities for ETF issuers. In the United States, BlackRock, grayscale, such as asset management institutions have already acted, and Hong Kong and what institutions can seize this wave of financial dividends?

Among the funds in Hong Kong, Harvest Fund and Huaxia Fund are strong, with the former issuing Harvest CSI 500 ETF and the latter issuing Huaxia SSE 50 ETF, and these two Chinese veteran funds have enough strength to issue BTC spot ETFs.However, the Chinese background has formed a shackle to some extent, and due to the stringent regulation of virtual assets such as BTC in mainland China, the approval process for Chinese funds to issue BTC ETFs has been blocked. The approval process for the issuance of BTC ETFs by Chinese-funded funds is hindered by the stringent regulation of virtual assets like BTC in mainland China.BTC Asic Miner

Hong Kong currently has about thousands of No. 9 licensed asset management institutions, but the traditional No. 9 licensed institutions can only manage investment portfolios that invest less than 10% in virtual assets, and only after upgrading virtual assets can they manage investment portfolios that invest 10%-100% in virtual assets. Currently, there are only a dozen or so institutions that have upgraded their No. 9 licenses, including the old local brokerage firms Victory Securities, Pando Finance, and Iber Capital Asia.

Victory Securities in the field of virtual assets layout active, not long ago became Hong Kong’s first for retail investors to provide virtual assets trading brokerage, but also joint EMC Labs issued the first acceptance of stablecoin subscription compliance BTC fund, I think it will not miss this “on the table” opportunity.

In addition, Southern Dongying, which previously issued a BTC futures ETF, and HashKey, a licensed virtual asset exchange, are also expected to get a share of the BTC spot ETF. As for this wave of crypto in Hong Kong, exchange giants such as CoinShares have been out of the loop and basically have nothing to do with it.https://www.Hominers.com/

It is expected that Hong Kong’s first BTC spot ETF will soon be unveiled, and it will be interesting to see what the magic of this “aphrodisiac” will be.