Recent reports suggest that multiple issuers in Hong Kong have indicated approval for spot crypto exchange-traded funds (ETFs), leading to a surge in Bitcoin (BTC) and Ethereum (ETH) prices. However, the official confirmation from Hong Kong's Securities and Futures Commission (SFC) is still awaited.
Hong Kong ETF Approvals and Market Response
Several entities, including China Asset Management and Bosera Capital, have announced on social media platforms that they have received approval to list spot Bitcoin and Ethereum ETFs in Hong Kong. This news has fueled positive market sentiment, resulting in a 2.8% increase in BTC prices to over $66,500 and an upward movement in ETH prices to $3,240.
However, these announcements seem to have preceded an official statement from the SFC, which has not yet published a list of approved issuers. Some of the social media posts claiming approval have been subsequently removed, indicating a level of caution around premature announcements.
Potential Institutional Demand and Market Impact
Despite the absence of official confirmation, industry experts like Singapore-based QCP Capital anticipate that the approval of these ETFs will attract institutional demand during Asia trading hours. Previously, investors seeking exposure were limited to US hours, but the availability of Asia-based ETFs could shift this dynamic.
QCP Capital suggests that while this development is likely to have a short-term bullish impact, broader macroeconomic events and narratives will continue to play significant roles in shaping market trends.
