Despite China’s firm ban on cryptocurrency trading, Hong Kong, which is closely linked to the mainland, may inadvertently play a key role in Bitcoin‘S Bitcoin/USD rising to the long-awaited price of $100,000. The financial hub is on the verge of becoming a significant player in the crypto ETF market.
What happened: According to Reuters, inside sources suggest that spot Bitcoin ETFs could debut in Hong Kong this month, with initial approvals potentially announced next week. This rapid timeline, faster than industry projections, is due to the accelerated approval process by regulators.
Chinese fund managers see opportunity: Notably, Chinese asset managers are at the forefront of launching these Bitcoin ETFs. At least four asset managers from mainland China and Hong Kong included Chinese wealth management, Crop fund managementAND Bosera Asset Managementhave submitted requests, according to Reuters and Nikkei reports.
Because matter: The introduction of spot Bitcoin ETFs in Hong Kong is expected to attract massive global investment, echoing the success story of the United States, where Bitcoin ETFs have amassed a staggering $58 billion in assets since January, according to Bloomberg.
This increase in demand has pushed the price of Bitcoin by more than 60% this year, reaching an all-time high of $73,803 in March.
See also: How to buy Bitcoin (BTC)
Bloomberg Intelligence analyst Rebecca Sin sees continued momentum: “The launch of Bitcoin spot funds in Hong Kong may be imminent… global Bitcoin ETF assets could soon reach $100 billion.”
Senior Bloomberg ETF Analyst Eric Balchunas believes Chinese investors would “go crazy” if regulators allowed them to buy Bitcoin ETFs, “considering the extent of FOMO displayed for gold and US stocks.”
Last month, a U.S. CEO attended a high-level meeting with China’s president Xi Jinpinghe said that Chinese citizens consider it risky to be rich in China and are trying to “get their money out of the country.”
Although mainland China prohibits cryptocurrency trading, its financial institutions are eager to tap into the thriving cryptocurrency market through Hong Kong’s more lenient regulations. According to Bloomberg, Hong Kong already allows futures-based crypto ETFs, listing three with combined assets of around $170 million.
Hong Kong’s ambitions: Hong Kong’s push into cryptocurrency ETFs stems from its aim to regain its status as a financial center amid economic slowdown and geopolitical tensions. By embracing cryptocurrencies, the city hopes to establish itself as a regional virtual asset hub, Nikkei reports.
Louie Lee of Prosynergy Consulting said: “Hong Kong’s push to encourage cryptocurrency trading is a step in the right direction for Web3. But we need more development in terms of products.”
Price Action: According to data from Benzinga Pro, as of 2:30 a.m. ET, Bitcoin was trading up 0.17% at $70,877. A bullish analyst predicts a potential new all-time high for BTC before the next halving, warning that altcoins may face challenges.
What’s next: Bitcoin’s influence as an institutional asset class is expected to be explored in depth at Benzinga’s upcoming Future of Digital Assets event on November 19.
Read next: Peter Schiff Predicts Bitcoin ETFs Will Lead to ‘Biggest Crash Ever’
Disclaimer: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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