- SFC just approved in principle the operation of spot Bitcoin and Ethereum ETFs in Hong Kong.
- Their launch is yet to be announced.
Hong Kong Enters the Spot Crypto ETFs Market
Hong Kong finally makes its move as it does not want to get left behind by the success of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the US. Today, the Special Administrative Region (SAR) of China one-upped its Western rivals by approving not one but two spot crypto ETFs based on Bitcoin and Ethereum (ETH). This is now leading to a renewed optimism in the two largest digital assets by market cap.
The positive news comes amidst the ongoing tension between Iran and Israel, which has bled the crypto market dry last Saturday, causing Bitcoin to steer off its momentum at the $70K territory to below $62K as reports about Iran’s bombardment of Israel with drones and missiles began circulating in mainstream media.
The SFC’s Approval of Spot Bitcoin and Ethereum ETFs
We are yet to unearth the exact number of spot Bitcoin and Ethereum ETF issuers greenlit by the Hong Kong Securities and Futures Commission (SFC). However, according to China Asset Management, its unit in the Chinese SAR was just notified of its spot crypto ETFs’ approval in principle from the regulator.
Another big fund manager in China, Harvest Fund, reportedly confirmed the same milestone. Meanwhile, Bosera Asset Management and HashKey Capital shared the same update, but in their case, it was a conditional approval.
This wave of approvals interestingly comes despite the existing ban of Bitcoin and other cryptocurrencies in mainland China. But then again, the giant Asian nation has always shown a contrasting stance when it came to Hong Kong’s bid to become a crypto hub in Asia.
A Timely Move
The historic decision of the SFC comes at a very opportune time when BTC is about to hit its fourth halving around April 20. The event is pre-programmed to cut Bitcoin mining rewards in half from the current 6.25 BTC per block to 3.125 BTC post-halving.
Analysts expect the event to be a catalyst for further all-time highs for Bitcoin and Ethereum, as well as other mainstream altcoins that heavily track their price movements. By far, the consensus is placing their bets on BTC’s potential climb over $100K by year-end and ETH’s price ballooning over $4K along the same timeframe; and this momentous development could just be the right reinforcement they need to sustain the said targets.