Bitcoiners Await Hong Kong ETF Decision

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  • Hong Kong is on the verge of approving Bitcoin and Ethereum ETFs
  • There is an expectation that the approvals could come as soon as today
  • The move would allow Chinese investors to get back into Bitcoin

Bitcoiners are eagerly awaiting news of Bitcoin ETFs being approved by Hong Kong authorities, which some believe could unlock around $25 billion in pent-up demand into the market. Rumors circulated towards the end of last week that Hong Kong could approve its first Bitcoin ETFs as soon as today, with an Ethereum ETF also a possibility. Market experts believe that Chinese investors in particular could be the biggest buyers, following in the footsteps of their sizeable investments in gold and US stocks this year.

Green Light for Hong Kong Bitcoin ETF?

Bloomberg and Reuters both reported last week that Hong Kong is on the brink of approving Bitcoin and Ethereum ETFs three months after the US eventually bowed to demand, a move that would mark a significant step in the city’s embrace of cryptocurrencies.

According to the outlet’s sources, the approval could come as early as Monday, pending final clearance from the Securities and Futures Commission (SFC) and the completion of listing details with Hong Kong Exchanges & Clearing Ltd.

Among the issuers expected to receive the green light for these spot-crypto ETFs are an international arm of Chinese asset manager Harvest Fund Management and a collaboration between Bosera Asset Management and HashKey Capital. Harvest and China Asset Management were granted clearance to provide virtual asset-related fund management services by the SFC on April 9, signaling a broader regulatory shift towards embracing cryptocurrency in the city and starting the ETF rumor mill going into overdrive.

Bitcoin Surge Won’t Dissuade Buyers

ETF observers believe that the massive Bitcoin buy-in following the approval of a US ETF in January, which saw Bitcoin rocket from $42,000 to $73,000, won’t have deterred Asian investors:

To this end, Adrian Wang, the chief executive of Metalpha, a Hong Kong-based crypto wealth manager, told Reuters that the significance of Hong Kong ETFs is “far-reaching” and could “bring in fresh global investment as well as pushing crypto adoption to a new height.”