Hong Kong Approves Spot Bitcoin and Ethereum ETFs
The approval of these ETF products in Hong Kong is anticipated to be a major driver for the cryptocurrency market, positioning the city as a leading digital asset hub in Asia.
While the United States approved spot Bitcoin ETFs in January, resulting in a record-breaking price surge that propelled Bitcoin to reach $73,000, it has not yet approved Ethereum ETFs.
In contrast, Hong Kong approved both Bitcoin and Ethereum spot ETFs at the same time. Meanwhile, expectations for the approval of spot Ether ETF products in the U.S. remain subdued due to the lack of SEC engagement with the applicants. JPMorgan analysts placed the approval of Ether ETFs by the final deadline in May at 50%.
Following the news of the approval, BTC surged 2.81% in the past 24 hours to trade at $66,526, up from the lows of $62,000. Meanwhile, ETH gained 4.88% and is currently trading at $3,246.
The crypto markets had a brutal sell-off last week following escalating tensions in the Middle East, which propelled fears of a blown-out war.
