Hong Kong has taken an important step forward in the cryptocurrency market by conditionally approving the first bitcoin and ether ETFs. The Securities and Futures Commission has approved these ETFs, which will soon be offered by Hong Kong issuers such as Harvest Fund Management and Bosera Asset Management.
Unlike the cash creation model common in the U. S. , these ETFs will utilize a cash creation method that issues shares using real #BTC and #ETH .
This method increases market liquidity and facilitates trading.
The launch could attract additional local and international investors, and the price of BTC could rise as global institutional investors become more receptive.
The initiative could have a significant impact on Hong Kong's role in the global digital asset market, encouraging greater #cryptocurrency adoption and investment.
#BTC is currently trading below $67,000, so the fourth halving, scheduled for April 20, has caught the attention of analysts and investors, with JP Morgan analysts believing the market has already adapted to the halving, according to a February report.
Historically, halving, which reduces miners' remuneration and adjusts mining complexity, causes supply-driven price spikes. In addition, the SEC's recent approval of a bitcoin spot fund has increased institutional investor interest.
The HULVIN #meme coin rose 44% overnight, reflecting increased interest from retail investors in anticipation of the price halving.
Meme coins should be treated with caution due to their high volatility.
Despite the potential risks, bitcoin's price stability and growing institutional support indicate that the market is maturing and has the potential to rally after a half-life.
Bitcoin faces resistance near $64,000 amid rising tensions in the Middle East, and CNBC Crypto World reports that geopolitical uncertainty has alarmed investors and could hinder bitcoin's growth.
The cryptocurrency community is also closely following the events surrounding the halving of mining rewards that occur every four years. This period of geopolitical instability could push investors toward bitcoin as a safe haven.
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