Bitcoin surges after ETF approval in Hong Kong


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The price of Bitcoin (BTC) and Ether (ETH) have risen sharply in Hong Kong after several applicants claimed to have obtained approval for exchange-traded funds (ETFS) in cryptocurrencies. Market analysts note that Bitcoin’s price has increased by about 2.8% in the last 24 hours, trading above USD 66,500, while Ether has reached USD 3,240.

Details of the approvals

China Asset Management, Vocera Capital, and other applicants have announced on the social network WeChat (Weixin) their authorization to list Bitcoin and Ether ETFs in Hong Kong.

Although these statements anticipated an official pronouncement, the Securities and Futures Commission (SFC) has so far not published a list of authorized issuers. Some of these publications have subsequently been withdrawn.

The approval of ETF products in Hong Kong is considered one of the most significant developments in the cryptocurrency sector and could position Hong Kong as the leading digital asset center in Asia. Hong Kong is competing with countries such as Singapore and the United Arab Emirates to become the leading hub for digital asset firms after it implemented a regulatory regime for digital asset providers last year.

This regime is known as the Virtual Asset Trading Platforms (VATP) licensing regime operating since June 2023.

ETF insight

QCP Capital, a Singapore-based digital asset trading house, conveyed to CoinDesk that once accepted, ETFs could stimulate institutional demand in Asia.

“Participants seeking exposure were previously limited to U.S. hours, but now institutional investors have an Asia-based alternative. This will be positive in the short term, although there are more driving narratives and factors, such as macroeconomic events.” QCP Capital.

This news follows the U.S. Securities and Exchange Commission (SEC)’s approval of multiple spot Bitcoin ETF applications, which have attracted billions of dollars in inflows since January.

The SEC, however, has been more reluctant to approve an Ethereum ETF, delaying its response to several applications. Meanwhile, the Ethereum Foundation has reported that it is under investigation by a state authority, a situation that, without confirmation of U.S. involvement, has increased analysts’ pessimism about the approval of an Ethereum ETF.

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