Bitcoin ETFs hitting Hong Kong excite markets overnight, but overall BTC price conditions remain precarious, analysts say.
Hong Kong already has a clear definition of Ethereum and it is not a security, said OSL Digital Securities head Wayne Huang.
Bitcoin bulls may soon be back in business. According to Willy Woo, an on-chain analyst, market data shows that urgent “market sells” responsible for forcing the coin from all-time highs are now falling. This development may prop up prices, preventing further sell-offs. Bitcoin Selling Pressure Easing This preview is due to falling Cumulative Volume Delta (CVD) data, an on-chain indicator that can also track market sentiment. Specifically, it tracks buying and selling aggression from market participants. Now that CVD is dropping, Woo says more BTC holders are likely willing to weather the storm. Their decision may directly support prices. Woo adds that BTC must reject selling pressure and end the current short-term weakness as things stand. As on-chain data shows, BTC should stay above $59,600. The CVD lie has historically separated bullish and bearish zones. Related Reading: Polygon In Peril: Will MATIC Bounce Back Or Stay Stuck In The Sub-$1 Doldrums? Based on this, BTC should remain above the $60,000 round number for the uptrend to be sustained. If not, and bears take over, pressing prices lower below the CVD level could signal the beginning of a new bear regime. Thus far, BTC is under immense selling pressure, shaving approximately 15% from all-time highs. The coin has support at around the $60,000 and $61,000 zone, moving inside a range. Resistance is at an all-time high of around $74,000 on the upper end. Based on this preview, any losses below $60,000, as Woo notes, would likely see BTC dump. The coin might drop to $53,000 in the short term, torching stop losses and fueling the sell-off. Will Hong Kong Spot ETF Launch Lift Prices? Whether BTC bulls will flow back depends mostly on institutional involvement in the days to come. Following the approval of spot Bitcoin exchange-traded funds (ETFs) in January, prices spiked higher, breaking previous all-time highs. Institutional involvement has been vital. However, inflows have slowed down, especially in the last two weeks of April. Analysts are now looking at the launch of spot Bitcoin ETFs in Hong Kong on April 30. Related Reading: Ethereum Fees Dive: Will This Spark A Surge In Network Activity? In a recent interview, Zhu Haokang, the Head of Digital Asset Management in Hong Kong, is bullish. Haokang expects trading volume to eclipse those seen in the United States. The executive says the product is unique, allowing for a physical subscription that’s more attractive for BTC miners. Moreover, it is global, drawing interest from Singapore and the Middle East investors. Feature image from DALLE, chart from TradingView
Taking to X on April 26, one analyst notes that there is a high probability of Ethereum spiking in the sessions ahead because of thinning sell-side liquidity across major centralized exchanges like Binance and Coinbase. Thin Sell-Side, Big Potential Move For ETH Thinning sell-side liquidity, as seen on order books across CEXes, means that few sellers are […]
The spot exchange-traded funds will be denominated in the United States dollar, Hong Kong dollar, and Chinese yuan.
One of the issuers waived management fees for the first six months, undercutting rival offerings.
Amid the buzzing excitement following the approval of Bitcoin and Ethereum Spot Exchange-Traded Funds (ETFs) in Hong Kong, Bloomberg Intelligence analyst Eric Balchunas has made a post highlighting the explosive growth of the products in the United States. US Bitcoin ETFs Assets Surpasses Hong Kong’s According to Eric Balchunas, the combined asset pool held by […]
Hong Kong further solidified its status as a crypto hub, with several issuers reporting approval of their spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs) applications on April 15. However, Hong Kong’s foremost financial regulator, the Securities and Futures Commission (SFC), has yet to release an official statement on this development. SFC has not responded to […]
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The Securities and Futures Commission, Hong Kong's markets regulator, has not made an official announcement.
Hong Kong is on the cusp of approving its first spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) with potential final approvals as early as Monday, according to Bloomberg, citing two people familiar with the matter. This move positions Hong Kong as a pivotal player in the Asian cryptocurrency market and underscores its ambition […]
HashKey and the Foundation are focussing their partnership on Hong Kong in the first phase.
In a recent analysis, Stanislas Bernard, the founder of Sinz 21st.Capital, delved into the complexities surrounding Hong Kong’s consideration to approve spot Bitcoin ETFs against the backdrop of China’s escalating economic crisis. With the nation grappling with a record debt-to-GDP ratio of 288% in 2023, and witnessing one of the most severe housing market collapses in three decades, the financial instability has triggered an unprecedented capital flight towards overseas markets. The Perfect Timing For A Spot Bitcoin ETF? Amidst these turbulent economic times, Hong Kong’s potential approval of spot Bitcoin ETFs stands out as a pivotal development that could not only be a safe haven for Chinese investors but also significantly influence Bitcoin’s valuation, potentially catapulting it to the elusive $100,000 mark. China’s economic woes have been intensifying, marked by a towering debt ratio and a plummeting housing sector that has investors scrambling for alternatives. “China currently faces a significant economic downturn, exacerbated by soaring debt and malinvestments in real estate. The crisis, becoming well-known in 2021 with the default of Evergrande Group, has now spread, causing a ripple effect that will likely slow down the Chinese economy for years to come,” Bernard pointed out. Related Reading: Bitcoin Stays Sub $70,000 As Hong Kong Readies April-End ETF Launch This backdrop of economic instability has incited a significant shift in investor behavior, notably among Chinese investors who, faced with stringent capital controls, have sought refuge in ETFs that offer exposure to foreign markets. Yet, this avenue has been fraught with its own challenges. “Investors are paying premiums as high as 43% on certain US-focused ETFs due to quota limitations, which speaks volumes about the desperation to find safer investment harbors,” Bernard notes. Such premiums underscore the pervasive fear and uncertainty that have gripped the Chinese market, driving investors towards seemingly any available exit from the volatility of the domestic market. The Role Of Hong Kong Bernard believes that not only Hong Kongers but also Chinese mainlanders will flock to Bitcoin ETFs. “They are pretty integrated. Mainland is HK’s largest trading partner. Would not be possible to approve a spot ETF and then close it to mainland. They will enforce transaction limits instead,” the expert said. In the midst of these developments, Hong Kong’ Securities and Futures Commission (SFC) is reportedly considering the approval of spot Bitcoin ETFs already by the end of April, as reported yesterday. This move is viewed as a strategic effort to capture a portion of the capital flowing into Bitcoin, especially in the wake of the SEC’s approval of similar ETFs in the US, which saw a meteoric rise with $12 billion of net flow. Related Reading: Bitcoin 2 Months Through “Euphoria Wave,” How Long Was The Last One? “Hong Kong is scrambling for a change. The approval of spot Bitcoin ETFs could unlock a vast reservoir of stranded Chinese capital into Bitcoin, providing a much-needed life raft for investors,” Bernard explained. The anticipated approval of spot Bitcoin ETFs by Hong Kong authorities has been met with significant enthusiasm within the crypto community. Influential figures such as Bitcoin Munger and Stack Hodler have been vocal about the potential impact of this development on Bitcoin’s price. “Hong Kong ETFs approval have accelerated to next week. Most accounts on CT weren’t making a big deal about them, but they are a big deal. They are going to take us to $100k+ in due time. Tick tock!” stated popular Bitcoin analyst Bitcoin Munger (@bitcoinmunger). He refers to the regional yearly year-over-year supply change from West to East. Stack Hodler (@stackhodler) further emphasized the urgency among Chinese investors to find secure investment avenues outside the traditional system, “Chinese investors were panic-buying a Gold fund at a 30% premium this month as they attempt to get their wealth into something outside the Chinese system. The approval of Hong Kong spot ETFs could be the turning point, offering a sanctioned avenue for wealth preservation amidst the crumbling real estate market.” Overall, the potential approval of spot Bitcoin ETFs in Hong Kong is poised to be a landmark development, not just for the region but for the global market. By offering a secure and regulated channel for investment, it could serve as a catalyst for significant capital inflow into Bitcoin, reinforcing its status as a viable store of value. “As we stand at the cusp of this historic development, the implications for Bitcoin and the broader cryptocurrency market could be profound. The approval of spot Bitcoin ETFs in Hong Kong could indeed be the harbinger of a new era, potentially driving Bitcoin’s value to new heights,” concluded Bernard. At press time, BTC traded at $70,945. Featured image created with DALL·E, chart from TradingView.com
Massive demand for a China-listed gold ETF sent its premium soaring to 30% earlier this week.
China's top funds are hoping to leverage Bitcoin's novelty and potential to stand out in a highly competitive Hong Kong stock market.
The HashKey Group, an Asian firm offering digital asset services, has launched the HashKey Global exchange, after being granted a license in Bermuda to offer licensed digital asset trading services, it announced on Monday.
Asset Manager VSFG, together with its partners, Value Partners, have applied for a spot-bitcoin exchange-traded fund (ETF) with Hong Kong's Securities and Futures Commission (SFC), its Head of Investment & Products Brian Chan told CoinDesk on Wednesday.
Analysts believe Bitcoin exchange-traded funds (ETFs) could see a significant upswing following their launch in Hong Kong due to the adoption of in-kind creation models. Bloomberg senior ETF analyst Eric Balchunas further pointed out that Hong Kong’s adoption of an in-kind creation model for spot Bitcoin ETFs could potentially boost the assets under management (AUM) […]
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The Securities and Futures Commission of Hong Kong's (SFC) issued a warning against HKCEXP, which it claims lured investors by falsely claiming to be an “FSC-registered business.”
Hong Kong's markets regulator identified Bybit as a suspicious cryptocurrency exchange and placed several of its products on its suspicious investment products list.
Phase 2 of the e-HKD pilot will be supported by the recently launched regulatory sandbox for testing wholesale CBDCs and tokenization, the Hong Kong Monetary Authority said.
The announcement comes as Hong Kong works to brand itself as Asia's digital assets trading hub.
According to blockchain security experts, it might not be that easy to detect if a crypto website is fake, especially for new visitors.
All crypto exchanges and trading platforms that have failed to file for license applications with the regulator by Feb. 29 must wind up their business in Hong Kong by May 31.
The program intends to help local universities, research institutes and businesses use the AI Supercomputing Center’s computing capabilities.
Hong Kong's securities regulators says HBGL Hong Kong Limited withdrew its application for a license on February 23.
On Feb. 20, Huobi HK became the 18th crypto exchange to apply for a virtual asset trading platform license with the Hong Kong Securities and Futures Commission.
The two letters, each several pages long, mainly urge common sense and adherence to widely accepted standards.
The SFC has granted multiple licenses since the city opened doors to retail crypto trading last August.
Hester Peirce believes that if the SEC is “confident in its investigative work” and analysis, it doesn’t need to “demand silence on the part of settling defendants.”
The Secretary for Financial Services and the Treasury, Christopher Hui, wrote in a blog that unlicensed service providers must submit an application for licensing by Feb. 29.