BlockBeats News reported on October 7th that converting the stablecoin USDT into stocks may come with a 3-5% cost, but the potential 50-70% upside of investing in Chinese stocks is making this strategy appealing to many.
Observers noted that despite a recent 20% surge in Bitcoin driven by China’s stock market stimulus policies, Bitcoin has remained relatively stable since the end of September. It’s possible that the rally in Chinese stocks is drawing investment away from cryptocurrencies and other Asian stocks temporarily.
Experts believe that while the recent recovery of China’s stock market may limit the potential upside for assets like Bitcoin, it could still be a smart risk-reward strategy for investors. Despite the switching costs, the potential for significant gains in the Chinese market is attracting investors.
Danny Chong, co-founder of the Digital Asset Association Singapore, highlighted that even with a 3-5% switching cost, investors can expect a substantial 50-70% upside, making this a strategic choice. Additionally, funds from other Asian stock markets are also flowing into Chinese stocks, with the Shanghai Composite Index rising over 20% since September 24th and the Hang Seng China Enterprises Index increasing by more than 25%.
To learn more, check out the source article here.
