Hong Kong Doesn’t Hesitate to Take Steps for the Crypto Ecosystem
The rapidly growing crypto market in Hong Kong, influenced by regulatory approval, is leading the way in plans for spot Bitcoin ETFs and spot Ethereum ETFs. Applications for spot Bitcoin ETFs have been planned by 10 financial institutions, including Harvest Finance, and are expected to be launched quickly in Hong Kong. However, recent reports suggest that Hong Kong may launch the spot Ethereum ETF before the U.S.
Applications for spot Bitcoin ETFs are currently in progress, and Hong Kong is among the financial institutions planning to launch 11 spot Bitcoin ETFs. According to local media reports dated March 11, the industry is calling for quick action, especially for the approval of spot ETFs, including spot Ethereum ETFs.
After the approval of 11 spot Bitcoin ETFs in the U.S., Bitcoin and crypto adoption gained momentum. Net inflows surpassed $9.5 billion, and total assets under management (AUM) exceeded $55 billion. BlackRock’s Bitcoin ETF surpassed the Bitcoin assets of Michael Saylor’s MicroStrategy.
With increasing adoption in Hong Kong alongside regulatory support, plans to launch a spot Ethereum ETF are intensively prepared in the U.S. The U.S. SEC recently postponed the spot Ether ETF applications from BlackRock and Fidelity, with market experts predicting approval by the end of May. Hong Kong aims to lead in the midst of growing uncertainty around the Ethereum ETF in the U.S. Experts suggest that Hong Kong spot ETFs and derivatives could be launched as soon as possible.
Weng Xiaoqi, COO of HashKey Group, said, “The delay of spot ETFs for half a year also means that the entry of U.S. capital into the market will be half a year later. By then, they will face higher purchase costs and entry points and will have to bear the risk of being locked in by U.S. capital.”
Bitcoin Products Boost BTC Price
Spot Bitcoin ETFs in the U.S. were supported by demand, and along with Bitcoin ETPs and ETNs in Europe, they propelled the Bitcoin price to a new all-time high of $70,000 last week.
Meanwhile, two Bitcoin futures ETFs in Hong Kong reached new highs amid the crypto market rally. The Southern Bitcoin ETF reached a high of 27.5 yuan last week, 2.5 times its listing price; the Samsung Bitcoin ETF reached a peak of 26.8 yuan, 2.2 times its listing price.
The BTC price is currently trading at $71,270, experiencing a slight pullback. Meanwhile, the ETH price, after reaching $4,000, is trading at $4,012.
