Bitcoin (BTC) and ether (ETH) have seen significant price increases, with BTC rising 2.8% to over $66,500 and ETH climbing to $3,240. These gains come as news emerges that several issuers in Hong Kong have reportedly been approved for spot crypto exchange-traded funds (ETFs). China Asset Management, Bosera Capital, and others have announced on social media that they have received approval to list spot bitcoin and ether ETFs, suggesting the potential for increased institutional demand in the Asian market.
Despite these announcements, the Securities and Futures Commission (SFC) has not issued an official statement or list of approved issuers, leading to some uncertainty surrounding the situation. Singapore-based digital assets trading house QCP Capital believes that once the ETFs are officially approved, they will provide institutional investors with an Asia-based alternative for exposure to cryptocurrencies. This development is expected to have a bullish impact in the short term, although QCP Capital notes that there are other important narratives and drivers, such as macro events, that will continue to influence the market.
Overall, the news of potential approval for spot crypto ETFs in Hong Kong has generated positive momentum in the cryptocurrency market, driving up the prices of BTC and ETH. The prospect of increased institutional demand during Asia trading hours has sparked optimism among investors and market participants. While the SFC has yet to provide official confirmation, the anticipation of these ETFs being approved is seen as a significant development that could further legitimize and mainstream cryptocurrency trading in the region.