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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 put money into Hong Kong’s BTC ETFs.
To be able to perceive how they plan to try this, we first want to grasp how slightly factor known 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 specific amount (however not an excessive amount of).
Confused? We obtained you.
Proper now, the Shenzhen-Hong Kong Inventory Join connects the Shenzhen Inventory Change with the Hong Kong Inventory Change, permitting sure buyers to buy sure shares which are solely obtainable on the Shenzhen Inventory Change (and vice versa).
Roughly one week in the past, the Hong Kong Inventory Change 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 Change market cap larger than Hong Kong’s, however it may open the floodgates for the opposite two large inventory exchanges (Shaghai and Beijing) to commerce BTC by way 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 clients in 2021.
Let’s see how issues pan out.