BTC Trading Above $66,000 As Hong Kong Approves Bitcoin & Ethereum ETF Applications

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Bitcoin is trading above the $66,000 mark, rising by nearly 3% over the past 24 hours after multiple issuers in Hong Kong stated the Securities and Futures Commission had approved spot Bitcoin and Ethereum ETF applications. 

The approvals were anticipated to be done by Monday, although there has not yet been an official announcement from the authorities. 

Hong Kong Approves Spot Bitcoin, Ethereum ETFs 

According to reports, multiple issuers in Hong Kong have said they have been approved for spot Bitcoin ETFs. These include China Asset Management, Bosera, and several other applicants who posted on the WeChat (Weixin) social media platform, stating they had been approved to list spot Bitcoin and Ethereum ETFs in Hong Kong. The announcement from China Asset Management (Hong Kong) stated, 

“[Hong Kong, April 15, 2024] China Asset Management (Hong Kong) has received approval from the Hong Kong Securities and Futures Commission to provide virtual asset management services to investors. There are plans to issue ETF products capable of investing in spot Bitcoin and spot Ethereum.”

The announcement further stated that China Asset Management had joined hands with OSL Digital Securities to deploy the ETFs. 

“China Asset Management (Hong Kong) has joined hands with OSL Digital Securities Co., Ltd., a leading partner in the virtual asset industry, and BOC International Prudential Trusteeship Ltd., a leading custodian, to actively research and deploy this.”

No Official Announcement Yet 

However, the applicants’ announcements have come before any official statement from the Securities and Futures Commission regarding the approval of spot Bitcoin and spot Ethereum ETFs. So far, the Securities and Futures Commission has not posted a list of approved issuers. As of writing, some of the applicants’ posts have been deleted. 

Meanwhile, Singapore-based digital assets trading house QCP Capital has said that spot Bitcoin and Ethereum ETFs, when approved, will help unlock institutional demand during Asian trading hours. 

“Participants who wanted exposure have always been limited to US hours, but this now gives institutional investors an Asia-based alternative. We believe this will be bullish short term, but there are more important narratives and drivers such as macro events.”

Geopolitical Tension Impacts Bitcoin 

Bitcoin registered a significant drop over the weekend as geopolitical tension spooked markets after Iran launched a drone and missile attack against Israel. However, the attack was mostly repulsed by Israel’s Iron Dome defense system. However, with tensions subsiding, the markets made a quick recovery, with Bitcoin climbing above $65,000 and ETH going above $3100. Prior to the tension, the crypto space had already been under significant selling pressure thanks to tax season, which also occurred during the run-up to the Bitcoin halving. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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