Can you trade crypto ETFs in Hong Kong?

Yes, on April 30, 2024, Hong Kong investors began trading six Bitcoin and Ether spot ETFs. They were sponsored by three prominent institutions from mainland China, Harvest Global Investments, China Asset Management (CAM), and Bosera Asset Management. Hong Kong has historically positioned itself as a hub for cryptocurrency.

Can you trade crypto ETFs in China?

China banned cryptocurrency trading in 2021. The nation has a history of imposing bans and restrictions on cryptocurrencies. Although, at times China has reversed its policies, it has yet to change its latest ban.

What is the difference between ETFs and ETNs?

Exchange-traded funds are investment funds, traded on stock exchanges, mirroring the performance of an underlying index or asset. Likewise, exchange-traded notes are debt securities issued by financial institutions that track the performance of an underlying asset or index. The difference between the two is that ETFs typically hold the underlying asset, ETNs normally do not, but also typically expose investors to credit risk.

Why are Hong Kong ETFs important?

There are many reasons why some would view Hong Kong ETFs as an important event. Many people hypothesized that the debut of Hong Kong ETFs, which followed the Bitcoin halving, would cause the price of Bitcoin to pump. Additionally, the ETFs could be viewed as a sign of mainstream adoption.