Some experts believe that the initial acceptance of Bitcoin spot ETFs in Hong Kong markets could significantly boost Bitcoin’s price surge during its upcoming halving event.
Hong Kong could approve 4 Bitcoin ETFs before halving
The Hong Kong Securities and Futures Commission (SFC) might give its approval for the initial offering of Bitcoin spot ETFs by April 15. This could happen just a few days prior to the Bitcoin halving event, which is scheduled to reduce the production rate of new Bitcoins.
According to local news outlets, the Hong Kong regulatory body is said to have expedited the review process for four proposed Bitcoin spot ETFs. If approved, these ETFs would allow investors in Hong Kong, including retail and institutional ones, an easier way to invest in Bitcoin.
According to cryptocurrency entrepreneur and investor Lark Davis, posted on his X account on April 12, Hong Kong regulatory authorities might give the green light for both Bitcoin and Ether ETFs (Exchange Traded Funds) on April 15.
“Hong Kong likely to approve BOTH Bitcoin and Ethereum spot ETFs as soon as Monday! China is about to start bidding the same week the Bitcoin halving is happening!”
After the securities regulator gives its approval for the first Bitcoin ETFs to be listed on the Hong Kong Stock Exchange, it is anticipated that the process will be completed within about two weeks.
Can ETFs spark Bitcoin’s post-halving bull run?
If the first Bitcoin ETFs are approved in Hong Kong, Herbert Sim, COO of crypto exchange Websea, believes this could spark Bitcoin’s surge following the halving event, as reported by CryptoMoon.
“Halving is not the only thing to look out for in the price action. But rather the upcoming Bitcoin ETF approval in Hong Kong, which also happens next week. The big banks of China will all have to start buying Bitcoin themselves too.”
Sim noted that Hong Kong-based ETFs will only add to the institutional demand and inflows created by large U.S. ETF issuers such as BlackRock, which he expects to continue. He added:
“And with this supply cut from the Bitcoin Halving, prices will definitely soar.”
Major Bitcoin investors, often referred to as “mega whales,” who own over 10,000 Bitcoins are buying Bitcoin now, in preparation for the expected approval coming up next week, according to a recent post by well-known crypto commentator Bitcoin Munger.
“The only cohort that is net-accumulating Bitcoin is the largest whales (>10k). Just ahead of Hong Kong ETF approvals and the halving. A positive contrarian signal if I had to guess.”
Bitcoin’s price surge has seen a substantial contribution from ETF investments. As of February 15th, Bitcoin ETFs represented approximately 75% of the new funds flowing into Bitcoin, surpassing the $50,000 threshold, according to CryptoQuant’s findings.
According to Thomas Fahrer, the co-founder of Apollo, there is a strong connection between Bitcoin’s price movements and the net investments in Bitcoin ETFs. As shown in the following chart, he explained in a recent post on April 12.
“I would have thought it was extremely obvious that ETF flows are driving Bitcoin [price]…”
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2024-04-13 01:04