Grayscale is just an example; Hong Kong will not repeat the same mistakes.

Kabir903

Since the approval of the Bitcoin spot ETF in the United States, one of the most discussed topics has been Grayscale's continuous massive sell-offs. However, the Hong Kong market currently does not have Bitcoin trusts as large-scale as Grayscale's. Therefore, even if Bitcoin trusts in the Hong Kong market transition to ETFs and start redemption operations, it is unlikely to see such large-scale sell-offs.

Nevertheless, even with Grayscale's continuous sell-offs, the overall flow of Bitcoin spot ETFs in the United States remains in a net inflow state as of 9 a.m. today, with approximately $605 million flowing in, according to the OKEx Cloud Chain Research Institute. Specifically, Grayscale is the only one experiencing continuous outflows, while other funds are showing inflows.

There are two main reasons for Grayscale's continuous sell-offs: first, compared to other fund companies, Grayscale has the highest management fees, meaning investors buying $1 million of IBIT and the same scale of GBTC would save $13,800 in management costs;

Second, unlike other newly issued Bitcoin spot ETFs, Grayscale operates by converting trusts into ETFs. This allows investors who previously purchased GBTC at a discount to take advantage of arbitrage selling opportunities without the need for redemption and repurchase operations as Bitcoin prices rise. According to observations by the OKEx Cloud Chain Research Institute and on-chain data from OKLink, Grayscale began transferring on-chain assets to Coinbase Prime hot wallet addresses almost every working day about two weeks ago. Moreover, since January 23, 2024, the trend of continuous outflows from Grayscale has gradually weakened over seven consecutive days.

The launch of Bitcoin spot ETFs has achieved a close connection between the traditional financial market and the virtual asset market, signaling the opening of the doors of the structured financial market to the virtual asset field. According to Technavio's estimation, from 2023 to 2028, the global structured financial market (note 1) is expected to grow by approximately $997.68 billion, with an average annual growth rate of 11.8%.

As compliance activities and market maturity continue to improve, the launch of Bitcoin spot ETFs will mean the standardization of Bitcoin through spot ETFs in financial products.

Spot ETFs provide a more convenient and standardized investment method for a wide range of investors. Moreover, standardized products can improve market efficiency and better conduct risk management and investor protection. The large-scale adoption of compliance assistants proposed by us at the beginning of 2023 is coming to fruition in a thriving manner.

Kalkin995

Actually, everyone is most concerned about their own wallets.

Kahn332

This is something worth looking into.

Kapil334

Hong Kong seems to be struggling.

Shri333

Hong Kong should take this as a lesson.