Experts told how crypto ETFs in Hong Kong will change the market
Three months after the appearance of spot Bitcoin ETFs in the United States, the interest in which helped BTC to update its absolute maximum before halving for the first time in history, Hong Kong is closer to launching a similar instrument
Three months after the appearance of spot Bitcoin ETFs in the United States, the interest in which helped BTC to update its absolute maximum before halving for the first time in history, Hong Kong is closer to launching a similar instrument
The editors of BeInCrypto found out how the launch of spot cryptocurrency ETFs in Hong Kong could affect the crypto market immediately and in the long term. Experts helped us understand the issue.
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What's happened
On April 15, 2024, Hong Kong's Securities and Futures Commission (SFC) approved several applications to launch Bitcoin and Ethereum spot ETFs. The first asset managers to receive regulatory approval were China Asset Management, Harvest Global Investments, Bosera Capital and HashKey Capital Limited. The launch date for trading has not yet been announced.
Local authorities are actively working to regulate the crypto market. The transparent legal environment created by Hong Kong regulators has made the region attractive for crypto projects, thanks to which the special administrative region of China has become a major crypto center. Therefore, the crypto community closely monitors the actions of local authorities.
What to expect from Hong Kong ETFs: opinions
Bloomberg senior analyst Eric Balchunas believes that the launch of trading in the instrument will not have a serious impact on the market. According to his calculations, in the best case, issuers will raise $500 million for their spot crypto ETFs. He explained his negative forecast by the relatively small scale of the Hong Kong market, potentially low liquidity and high commissions.
Matrixport analysts disagreed with Balchunas. In their opinion, issuers will be able to raise $25 billion for the instruments. Analysts see the potential for increased demand for cryptocurrency ETFs.
In a conversation with the editors of BeInCrypto, Bitget analyst Ryan Lee drew attention to the fact that he adheres to positive forecasts. In his opinion, the launch of spot Bitcoin and Ethereum ETFs in Hong Kong should be considered from two sides:
Impact on the market. Hong Kong's approval of BTC and ETH spot ETFs comes during a general market downturn. However, judging by the reaction, this did not have a significant impact on the overall dynamics. Prior to this, there was no active speculation in tokens in Hong Kong, which may indicate that the impact of this event has already been taken into account by the market.
Long-term perspective. Hong Kong's approval of BTC and ETH spot ETFs sets a precedent for other countries around the world that are considering further regulation of cryptocurrencies. In the future, more regions may include BTC and ETH spot ETFs in their development plans. Additionally, discussions and prospects regarding the possibility of moving capital south through Hong Kong provide new opportunities for the market to think about.
Trader Oksana Belyanskaya joined the discussion of the impact of the approval of spot Bitcoin and Ethereum ETFs in Hong Kong on the crypto industry. In a conversation with the editors of BeInCrypto, she noted that the emergence of the tool will have a significant impact on the market by attracting significant capital and potentially shifting the focus of the cryptocurrency industry towards Asia, especially China.
“This move indicates a growing trend towards direct cryptocurrency purchases. The introduction of ETFs could lead to increased market activity and investment opportunities, potentially positioning Asia as a key player in the regulation and adoption of cryptocurrencies,” our interlocutor concluded.
Most of the posts about the approval of spot Bitcoin and Ethereum ETFs in Hong Kong are positive. Members of the crypto community believe that the event will support the growth of BTC. In the near future, against the backdrop of news from Hong Kong, investors are expecting Bitcoin at $90 thousand.
The editors of BeInCrypto found out how the launch of spot cryptocurrency ETFs in Hong Kong could affect the crypto market immediately and in the long term. Experts helped us understand the issue.
Buy cryptocurrency only on trusted sites! We have compiled a list of the best crypto exchanges with withdrawal of money directly to the card.
What's happened
On April 15, 2024, Hong Kong's Securities and Futures Commission (SFC) approved several applications to launch Bitcoin and Ethereum spot ETFs. The first asset managers to receive regulatory approval were China Asset Management, Harvest Global Investments, Bosera Capital and HashKey Capital Limited. The launch date for trading has not yet been announced.
Local authorities are actively working to regulate the crypto market. The transparent legal environment created by Hong Kong regulators has made the region attractive for crypto projects, thanks to which the special administrative region of China has become a major crypto center. Therefore, the crypto community closely monitors the actions of local authorities.
What to expect from Hong Kong ETFs: opinions
Bloomberg senior analyst Eric Balchunas believes that the launch of trading in the instrument will not have a serious impact on the market. According to his calculations, in the best case, issuers will raise $500 million for their spot crypto ETFs. He explained his negative forecast by the relatively small scale of the Hong Kong market, potentially low liquidity and high commissions.
Matrixport analysts disagreed with Balchunas. In their opinion, issuers will be able to raise $25 billion for the instruments. Analysts see the potential for increased demand for cryptocurrency ETFs.
In a conversation with the editors of BeInCrypto, Bitget analyst Ryan Lee drew attention to the fact that he adheres to positive forecasts. In his opinion, the launch of spot Bitcoin and Ethereum ETFs in Hong Kong should be considered from two sides:
Impact on the market. Hong Kong's approval of BTC and ETH spot ETFs comes during a general market downturn. However, judging by the reaction, this did not have a significant impact on the overall dynamics. Prior to this, there was no active speculation in tokens in Hong Kong, which may indicate that the impact of this event has already been taken into account by the market.
Long-term perspective. Hong Kong's approval of BTC and ETH spot ETFs sets a precedent for other countries around the world that are considering further regulation of cryptocurrencies. In the future, more regions may include BTC and ETH spot ETFs in their development plans. Additionally, discussions and prospects regarding the possibility of moving capital south through Hong Kong provide new opportunities for the market to think about.
Trader Oksana Belyanskaya joined the discussion of the impact of the approval of spot Bitcoin and Ethereum ETFs in Hong Kong on the crypto industry. In a conversation with the editors of BeInCrypto, she noted that the emergence of the tool will have a significant impact on the market by attracting significant capital and potentially shifting the focus of the cryptocurrency industry towards Asia, especially China.
“This move indicates a growing trend towards direct cryptocurrency purchases. The introduction of ETFs could lead to increased market activity and investment opportunities, potentially positioning Asia as a key player in the regulation and adoption of cryptocurrencies,” our interlocutor concluded.
Most of the posts about the approval of spot Bitcoin and Ethereum ETFs in Hong Kong are positive. Members of the crypto community believe that the event will support the growth of BTC. In the near future, against the backdrop of news from Hong Kong, investors are expecting Bitcoin at $90 thousand.