Bitcoin reacts positively to the approval of Spot ETFs by Hong Kong

Following their spectacular breakthrough in the United States at the beginning of the year, Bitcoin ETFs continue to expand. This time, it is China opening its arms to cryptocurrency in a more institutional form: trackers. The SFC, the local financial watchdog, thus gives its approval for the launch of these products in the region. A further step towards the legitimacy of Bitcoin, triggering a rush towards digital assets. Curiously, this announcement was greeted by a surge in BTC, crossing back over the $66,000 mark.

Hong Kong Opens Its Doors to Bitcoin: The Meteoric Rise of BTC to $66,000

The approval of China’s “made in China” Bitcoin ETFs this Monday is unsurprising for Reuters observers and certain crypto analysts. According to Matrixport, the introduction of these financial instruments in the region could lead to an influx of nearly $200 billion into the Chinese market.

Hong Kong is joining the crypto fray with the authorization of its first Bitcoin ETF, according to BeInCrypto. Granted by the Securities and Futures Commission (SFC), this decision could well make the city a significant competitor in the global digital currency market.

To realize this ambition, China Asset Management (Hong Kong) is teaming up with OSL Digital Securities and BOC International Prudential Trusteeship. These strategic partnerships aim to capitalize on their expertise in virtual asset management and custodial services.

The objective is clear: Hong Kong aspires to become a major hub for cryptos, rivaling cities such as Dubai and Singapore. This intention is reflected in a proactive regulatory approach, which seeks to stimulate market growth while protecting investors.

Parth Chaturvedi, Head of Investments at CoinSwitch Ventures, points out that American approvals could inspire massive inflows into Hong Kong’s Bitcoin ETFs. This move would confirm the city’s ambition to become a major crypto hub, a prospect that is sure to attract worldwide investor attention.

The Green Light Rediscovered

After a descent into hell due to tensions in the Middle East, Bitcoin is back in the green. The approval of Spot Bitcoin ETFs by Hong Kong has triggered this recovery. Despite a sharp drop to $62,700, the cryptocurrency has rebounded vigorously to $66,650, showing considerable gains.

The acceptance of Bitcoin ETFs also marks a two-step turning point for crypto adoption, as noted by Pierre-Yves Dittlot, founder & CEO of Ledgity:

The introduction of Bitcoin ETFs marks a decisive turning point for the institutional acceptance of crypto-assets as a legitimate investment asset class. Their acceptance will enable much wider adoption of Bitcoin through its integration into asset allocations.

Furthermore, Bitcoin may well have a decisive week ahead with the halving anticipated in the coming days. This halving of block rewards is seen by some as the harbinger of an imminent bull run for BTC.

However, other experts temper these expectations by pointing out that the effects might not be immediate.