Will Hong Kong Spot Bitcoin ETFs Drag Crypto From The Turmoil?

30 Apr, 2024 Updated 27 Aug, 2024

By David Pokima

Crypto Journalist

Expertise : Finance/Crypto Journalist

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

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Hong Kong’s approved spot Bitcoin (BTC) and Ethereum (ETH) ETFs have commenced trading with various conflicting views on their impact in the cryptocurrency market. On one hand, several commentators say it can boost the market out of the red zone as funds flow into these products.

The other side of the divide holds much skepticism as they opine inflows will not be as much to cause a major shift in crypto assets. At press time, the crypto market capitalization stands at $2.27 trillion, 1.8% down the previous day as asset liquidations continue. The weak sentiments have become a clog in the wheels of investors factoring a bull run.

Hong Kong Spot Bitcoin ETFs Sparks Debate

The first day of trading for newly approved Hong Kong’s spot Bitcoin and Ethereum ETFs saw $12 million in inflows, a figure significantly lower than was recorded in the United States. Bitcoin ETFs recorded a massive $4.6 billion in the first 24 hours, a fugue that pushed its price to new highs.

The slow start to Hong Kong’s Bitcoin ETF is 383 times below the United States. Putting into perspective, last year saw top-level institutional inflows to Bitcoin. Bitcoin price soared to $44,000 I. December on the back of anticipation alone.

Post approval, the price hit a new all-time high above $72,000 before present market corrections. The slow start in Hong Kong has led to analysts pointing to reduced low impact on the wider market. This is partly due to the ban in mainland China and other harsh policies.

Turning Point for Crypto ETFs

Despite the slow start, Hong Kong’s Bitcoin ETF is seen as a driving factor for more adoption in the future. The approval gives the asset wider acceptance among traditional investors. The move is pivotal as some Chinese investors look towards Bitcoin ETFs leading to more adoption.

Bitcoin price trading at $61,683 is a low compared to previous highs with bulls setting sight on another bull run. Hong Kong’s leaning toward crypto has been perceived as a test for mainland China. Whether or not this happens, the drive for the approval can affect institutional investors.

Also Read: Top Reasons Why US Bank Republic First Bank Collapsed

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Ethereum ETF

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.