The Securities and Futures Commission in Hong Kong (SFC) has approved the creation of China Asset Management's BTC and ETH spot ETFs. This means making it easier for Chinese people to invest in cryptocurrencies.
Bitcoin spot ETFs in Hong Kong
The SFC's decision is an important breakthrough. This means that it will be easier for investors from Hong Kong (de facto also China) to invest in cryptocurrencies. Of course, in an indirect way – through ETFs.
China Asset Management has now partnered with OSL Digital Securities and BOC International Prudential Trusteeship. These three entities will now create ETFs and take care of the cryptocurrencies under their care.
The BTC ETF will help Hong Kong cement its status as a global cryptocurrency hub. The city-state began implementing such a policy over a year ago.
You could say that the SFC's decision saved bitcoin and ether. Over the weekend, both cryptocurrencies (as well as the entire altcoin market) lost value. There were fears of an outbreak of war between Israel and Iran. On Sunday afternoon, it turned out that everything should be fine.
All this together is driving the BTC price today. Currently, one bitcoin costs USD 66,300 again, which means a price jump of about 3% since yesterday. However, if someone purchased BTC 7 days ago, they are still down 7%.
Will the situation in the USA repeat itself?
In the United States, the launch of similar spot bitcoin ETFs had a major impact on the market. Since its debut in January this year. these funds have already been credited with as much as USD 59 billion. This did not translate into an immediate increase in the BTC price, but we can assume that the last phase of the bull market (before the correction) was driven by capital from ETFs.
(…) in the case of new spot ETFs in Hong Kong, we can expect incoming flows in the billions. It also signifies Hong Kong's ambitions to become a regional cryptocurrency hub, competing with Dubai and Singapore
– Parth Chaturvedi, investment manager at CoinSwitch Ventures, told BeInCrypto.
