Let's talk about Hong Kong ETF. Hong Kong has approved several Bitcoin and Ethereum spot ETF applications. The three institutions that were approved this time are China Asset Management, Bosera Fund and Harvest Investment. In theory, the approval of ETFs outside the United States is only a small positive for the market. However, considering the special nature of Hong Kong backed by the mainland, many institutions believe that the Hong Kong government ETF will attract US$25 billion in mainland funds and can be used as a supplement to US time ETFs, which is considered to be a significant positive. But I think this positive is minimal, for four reasons: 1. The Hong Kong ETF market is too small, only US$50 billion; 2. The fund management scale of the three approved companies is too small, which is several orders of magnitude lower than that of BlackRock; 3. The liquidity is not very good, which will result in a lot of spreads and slippages, and cannot compete with other ETFs and CEX; 4. The transaction fee is too high, reaching 1-2%, which is almost the same as Grayscale, and is ten times that of other US ETFs, and is not competitive enough.
