May 30, 2024
Major Leak Suggests China ETF Approval Could Shake Up Bitcoin and Crypto Market
Bitcoin ETF

Major Leak Suggests China ETF Approval Could Shake Up Bitcoin and Crypto Market

Bitcoin has experienced a remarkable surge since the beginning of 2024, with its price skyrocketing by an impressive 70% despite concerns about a possible “raging firesale.”

The cryptocurrency has surpassed $70,000 per bitcoin, helping the broader crypto market move back toward its peak of $3 trillion.

XRP developer Ripple’s chief executive, Brad Garlinghouse, believes the market could double its current peak this year.

China Considers Approval of Spot Bitcoin ETFs in Hong Kong

A recent leak suggests that China might soon allow its citizens to invest in bitcoin spot exchange-traded funds (ETFs) in Hong Kong.

According to a Bloomberg report citing anonymous sources, Harvest Fund Management, a Chinese asset manager, could receive approval from Hong Kong’s Securities and Futures Commission (SFC) to launch a spot bitcoin ETF as soon as this month.

Adrian Wang, the chief executive of Hong Kong-based crypto wealth manager Metalpha, expressed optimism about the potential approval, stating, “The significance of Hong Kong ETFs is far-reaching as it could bring in fresh global investment as well as pushing crypto adoption to a new height.”

Reuters has reported that the first spot bitcoin ETF approvals in Hong Kong are likely to be announced next week.

The bitcoin price has topped $70,000 per bitcoin this year. Source: FORBES DIGITAL ASSETS

China’s Crypto Crackdown and Interest in Alternative Assets

Despite China’s history of cracking down on bitcoin and crypto trading, particularly in 2021, there remains a strong demand for assets not tied to the Chinese economy.

Local investors have been flocking to gold and U.S. stocks, showing signs of a fear of missing out (FOMO) on alternative investments.

Bloomberg Intelligence analyst Eric Balchunas commented on the situation, saying, “Wild stuff in China as local investors pile into a gold stock ETF pushing its premium to 30% and forcing it to halt trading.”

He added, “Investors there are so desperate to buy things that are not linked to their own economy or stock market, which has been in the gutter.”

Wall Street Spot Bitcoin ETFs Drive Market Growth

The surge in the bitcoin price this year is largely attributed to the introduction of Wall Street spot bitcoin ETFs in January.

Major financial firms such as BlackRock and Fidelity have become key players in this space, accumulating assets under management of around $15 billion and $9 billion, respectively.

The growing popularity of these ETFs among traditional investors is a significant factor in the increasing value of bitcoin and the broader crypto market.

As the year progresses, it remains to be seen how these developments will shape the future of the cryptocurrency landscape.

Image: Wallpapers.com

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