Rapid Fire
Exchange Traded Funds
- 06 Jun 2024
- 2 min read
Hong Kong has launched Asia's first Spot Bitcoin and Ether Exchange-Traded Funds (ETFs) in a step toward becoming a Virtual Asset Investment Hub of the Region.
- Bitcoin is the world's first and most well-known Cryptocurrency.
- Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on decentralised networks based on blockchain technology.
- Spot Bitcoin refers to the immediate purchase or sale of Bitcoin at the current market price.
- It involves real-time transactions where buyers and sellers exchange Bitcoin for fiat currency (such as US dollars) or other cryptocurrencies.
- Exchange-traded funds (ETFs) are investment funds that are traded on stock exchanges, much like individual stocks.
- They are designed to track the performance of a particular index, commodity, currency, or a mix of asset classes.
- ETFs offer investors a way to diversify their portfolios without having to buy individual securities.
- The ETFs can be traded in both Hong Kong Dollars and US dollars, and also in the Chinese Yuan.
- Hong Kong ETFs might encourage other nations to approve Cryptocurrency ETFs and could help promote the wider adoption of digital assets.
Read more: Cryptocurrency
