The potential approval of the primary batch of spot Bitcoin exchange-traded funds (ETFs) in Hong Kong could possibly be an enormous catalyst for Bitcoin’s (BTC) halving rally, commentators say.
Hong Kong might approve 4 Bitcoin ETFs earlier than halving
The Securities Regulatory Fee of Hong Kong (SFC) might approve the primary batch of spot Bitcoin ETFs by April 15, days earlier than the Bitcoin halving is about to chop the provision issuance price of BTC.
The Hong Kong regulator has reportedly accelerated the approval course of for 4 spot Bitcoin ETFs, in keeping with native information media stories. The potential approval might entice extra shopping for demand for Bitcoin, by providing BTC publicity to each retail and institutional buyers in Hong Kong.
Hong Kong regulators might approve each Bitcoin and Ether ETFs on April 15, in keeping with crypto entrepreneur and investor Lark Davis, who wrote in an April 12 X publish:
“Hong Kong more likely to approve BOTH Bitcoin and Ethereum spot ETFs as quickly as Monday! China is about to begin bidding the identical week the Bitcoin halving is occurring!”
It can take roughly two weeks to finalize ETF itemizing procedures on the Hong Kong Inventory Trade, after the securities regulator greenlights the preliminary set of spot Bitcoin ETFs.
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Can ETFs spark Bitcoin’s post-halving bull run?
The approval of the primary spot Bitcoin ETFs in Hong Kong might catalyze Bitcoin’s post-halving rally, in keeping with Herbert Sim, chief working officer of crypto change Websea, who instructed Cointelegraph:
“Halving just isn’t the one factor to look out for within the value motion. However fairly the upcoming Bitcoin ETF approval in Hong Kong, which additionally occurs subsequent week. The massive banks of China will all have to begin shopping for Bitcoin themselves too.”
Sim famous that Hong Kong-based ETFs will solely add to the institutional demand and inflows created by massive U.S. ETF issuers resembling BlackRock, which he expects to proceed. He added:
“And with this provide reduce from the Bitcoin Halving, costs will certainly soar.”
Massive buyers, or so-called mega whales, which are holding no less than 10,000 BTC are accumulating Bitcoin on the present value degree, in anticipation of subsequent week’s approval, in keeping with standard crypto commentator Bitcoin Munger’s April 12 X publish:
“The one cohort that’s net-accumulating Bitcoin is the most important whales (>10k). Simply forward of Hong Kong ETF approvals and the halving. A constructive contrarian sign if I needed to guess.”
ETF inflows have been a major a part of Bitcoin’s value rally. By Feb. 15, Bitcoin ETFs accounted for about 75% of latest funding on this planet’s largest cryptocurrency because it surpassed the $50,000 mark, in keeping with CryptoQuant analysis.
Bitcoin’s value motion has been intently correlated with the web Bitcoin ETF inflows, in keeping with Thomas Fahrer, the co-founder of Apollo, who wrote in an April 12 X publish, referencing the beneath chart:
“I’d have thought it was extraordinarily apparent that ETF flows are driving Bitcoin [price]…”
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This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.
