Bitcoin (BTC) has seen a 2.8% increase in value over the past 24 hours, reaching a trading price of over $66,500, while ether (ETH) has surged to $3,240. This uptick in prices comes as several issuers in Hong Kong announced that they have been approved to list spot crypto exchange-traded funds (ETFs), including China Asset Management and Bosera Capital. Despite these announcements on social media platform WeChat, the Securities and Futures Commission (SFC) has yet to confirm the approval of these issuers, leading to some posts being deleted.
The approval of spot bitcoin and ether ETFs in Hong Kong could potentially unlock institutional demand during Asia trading hours, according to Singapore-based digital assets trading house QCP Capital. This development provides institutional investors with an alternative to accessing exposure to cryptocurrencies during Asian trading hours, as opposed to being limited to US hours. QCP Capital believes that this news will have a positive short-term impact on the market, but also emphasizes that there are other important narratives and drivers at play, such as macro events that could influence cryptocurrency prices.
Despite the lack of confirmation from the SFC and the deletion of some social media posts, the news of potential spot bitcoin and ether ETFs being approved in Hong Kong has sparked optimism among market participants. The anticipation of institutional demand during Asian trading hours is seen as a bullish sign for the market, although it is noted that broader macroeconomic events will continue to play a significant role in shaping the future of cryptocurrency prices.