Bitcoin, the world’s leading cryptocurrency, continues its meteoric rise as it surged to a new record high on 14 March 2024, reaching an astounding US$73,750. This milestone marked a significant leap from its previous all-time high, with its market capitalisation soaring to US$1.44 trillion. And recently, there is growing anticipation surrounding the potential approval of Spot Bitcoin and Ether ETFs (Exchange-traded funds) in Hong Kong.
According to reports from Bloomberg and Reuters, Hong Kong authorities are poised to approve Spot Bitcoin and Ether ETFs imminently, potentially as early as Monday (15 April 2024). This development is viewed as one of the most significant market-moving events for cryptocurrencies in the near term, with expectations high for its impact on the broader digital asset landscape.
If the approval process proceeds smoothly, trading for these ETF products could commence by the end of the month. The key players in the industry are reportedly vying for approval, positioning themselves to become trailblazers in this emerging market.
The approval of Spot Bitcoin and Ether ETFs in Hong Kong could solidify the city’s status as a leading digital asset hub in Asia. While the United States paved the way for Bitcoin ETFs earlier in the year, the approval of Ether ETFs remains uncertain, making Hong Kong’s move particularly significant for the crypto market.
The potential impact of Hong Kong-listed Bitcoin ETFs is substantial, with estimates suggesting up to 200 billion Hong Kong dollars in available capacity, equivalent to approximately US$25 billion. This influx of institutional investment could further legitimise Bitcoin and Ether as mainstream assets, simulating a new phase of growth for the cryptocurrency market.
Du Jun, Executive Director & CEO of SINOHOPE (Stock code: 1611.HK), Hong Kong-listed digital assets platform, emphasised the significance of Hong Kong’s potential approval of Bitcoin ETFs, likening it to the pivotal moment when the United States gave the green light for such products. This endorsement could provide traditional investors with a more accessible and secure avenue to invest in Bitcoin, driving significant institutional capital into the crypto market.
Bitcoin’s record-breaking surge and the impending approval of Spot Bitcoin and Ether ETFs in Hong Kong signal a new era of growth and legitimacy for the cryptocurrency market. As institutional interest continues to rise and regulatory barriers gradually dissolve, the stage is set for cryptocurrencies to redefine the future of finance.
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The Hong Kong Web3 Festival, hosted by Wanxiang Blockchain Labs and HashKey Group, and organised by W3ME, provides a fitting backdrop for these developments. As Classique, the media partner of the festival, we are committed to bringing you the latest updates and insights into the dynamic world of Web3 and cryptocurrencies.
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