Hong Kong Regulators on the Verge of Approving First Batch of Bitcoin ETFs, Catalyst for BTC Surge
Summary:
Hong Kong's Securities Regulatory Commission (SFC) is expected to approve the first batch of spot Bitcoin exchange-traded funds (ETFs) by April 15, days before the Bitcoin halving event. The approval could draw more investors to Bitcoin from both retail and institutional sectors. Reports also suggest Ether ETFs could receive approval. Crypto expert Herbert Sim stated China's large banks would soon start investing in Bitcoin, and mega-whales are already amassing Bitcoin in anticipation of the ETF approval. Bitcoin ETFs made up about 75% of new investments in Bitcoin as of February 15.
The expected green-lighting of the inaugural set of spot Bitcoin exchange-traded funds (ETFs) in Hong Kong could significantly boost Bitcoin's (BTC) forthcoming halving event, experts indicate. The Securities Regulatory Commission in Hong Kong (SFC) may give the go-ahead to the initial group of spot Bitcoin ETFs by April 15, simply days before the Bitcoin halving action halves the rate of BTC supply issuance. Reports from local news outlets suggest that the approval of four spot Bitcoin ETFs by the Hong Kong regulation authority has been expedited. This upcoming approval could drive more buyers toward Bitcoin by presenting the possibility of a BTC venture to both conventional and professional investors in Hong Kong. April 15 may also see approval of Bitcoin and Ether ETFs by Hong Kong authorities, as per crypto investor and entrepreneur, Lark Davis, who wrote in an April 12 post. Once the SFC gives the first set of Bitcoin ETFs the go-ahead, it would take roughly two weeks to complete the ETF listing procedures on the Hong Kong Stock Exchange. The upcoming approval of Hong Kong's inaugural set of Bitcoin ETFs might ignite a post-halving surge in Bitcoin, revealed Herbert Sim, chief operating officer of cryptocurrency exchange, Websea. Sim observed that China's major banks will also start their Bitcoin acquisitions alongside this development. The anticipated cut in supply post-Bitcoin Halving will surely lead to rising prices, and the expected Hong Kong-based ETFs will augment the institutional demand created by large US-based ETF issuers like BlackRock. Anticipating the aproval next week, large BTC investors, "mega-whales", holding at least 10,000 BTC are currently building up their Bitcoin assets at the current price point, as per popular crypto analyst, Bitcoin Munger's April 12 post. Up to February 15, Bitcoin ETFs had accounted for approximately 75% of new investments in the topmost cryptocurrency globally as it crossed the $50,000 mark, as per CryptoQuant’s research. Bitcoin’s pricing has been significantly tied to the ETF inflow, as explained by Apollo's co-founder, Thomas Fahrer, demonstrating the link with the attached chart. This article does not offer any investment advice or suggestions. Investments and trading actions involve potential risk which necessitates that readers carry out their own research prior to making a decision.
Published At
4/13/2024 1:00:00 AM
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