The burgeoning crypto market amid regulatory approval in Hong Kong prompted spot Bitcoin ETF and spot Ethereum ETF plans. While the spot Bitcoin ETF applications are at a swift pace, recent reports suggest Hong Kong can launch spot Ethereum ETF before the United States.
Hong Kong to Capitalize on Spot Ethereum ETF Before the US
The spot Bitcoin ETF applications are currently under processing as 10 financial institutions including Harvest Finance plan to launch spot Bitcoin ETF in Hong Kong. The industry calls for fast action on spot ETFs approval, especially spot Ethereum ETF, reported local media on March 11.
After the United States approved 11 spot Bitcoin ETFs, Bitcoin and crypto adoption gained pace. The net inflow has surpassed $9.5 billion and total assets under management (AUM) exceeded $55 billion. Bitcoin holdings of BlackRock Bitcoin ETF has even surpassed Michael Saylor’s MicroStrategy.
With rising adoption in Hong Kong amid regulatory support, plan to launch spot Ethereum ETF from the U.S. is under intensive preparation. The U.S. SEC delayed BlackRock and Fidelity spot Ether ETF applications recently, with the market experts anticipating approval in May end. Hong Kong seeks to take the lead amid rising uncertainty surrounding Ethereum ETF in the US. Experts said Hong Kong spot ETFs and derivatives and other trading products can be launched as soon as possible.
“The delayed launch of spot ETFs in half a year also means that it will be half a year later for U.S. capital to enter the market. At that time, it will face higher purchase costs and entry points, and will have to bear the risk of being locked in by U.S. capital,” said Weng Xiaoqi, COO of HashKey Group.
Also Read: US CPI Data on Tuesday To Influence Crypto Market Movement This Week
Bitcoin Products Push BTC Price Higher
Backed by demand from spot Bitcoin ETFs in the U.S. and Bitcoin ETPs and ETNs in Europe, Bitcoin price made a new all-time high (ATH) of $70,000 last week.
Meanwhile, two Bitcoin futures ETFs in Hong Kong have hit new highs amid the crypto market rally. Southern Bitcoin ETF hit a high of 27.5 yuan last week, 2.5 times higher than the listing price; the Samsung Bitcoin ETF hit a high of 26.8 yuan, 2.2 times higher than the listing price.
BTC price currently trades at $68,754 after a slight pullback due to profit booking. Whereas, ETH price is trading at $3,854, also retracing after hitting $4,000 last week.
Also Read: XRP Whales Move 81 Mln Coins Amid New ATH Hype, What’s Happening?
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