We haven't even reached the middle of 2024 and we can already be sure: this year will go down as a milestone in the history of the crypto revolution when it comes to spot ETFs. After SEC authorization and the start of operations of eleven Bitcoin ETFs in the US in January, Hong Kong market regulators more recently gave the green light to this modality there.

But here there is an interesting difference that is worth presenting: the possible ETFs are also for Ether, not just Bitcoin. What difference does it make

Firstly, the current stage of Hong Kong

The green light granted by Hong Kong regulatory authorities occurred for two institutions: Harvest Fund Management and Bosera Asset Management. Since January, two other institutions were also seeking this permission - Samsung Asset Management and CSOP Asset Management -, but to date they have not yet received such approval.

The planning that these financial institutions proposed to carry out is related to a legal framework introduced in June 2023, which brought as a novelty the fact that it not only opened the field of possibilities for ETFs with Ether but also a series of measures that seek to protect those who invests in these assets.

All of this happens amid a curious duality: at the same time that China has banned several activities involving cryptocurrencies in recent years, Hong Kong seeks to become a global reference when it comes to cryptocurrencies.

Or, as is often said, they want to become a specific financial hub in this matter, both in regulatory terms and in terms of the activities and financial flows involved.

Positive momentum locally and globally

Just as we discussed how the Bitcoin halving should contribute to the advancement of the price, we have in this movement in Hong Kong another positive factor for Bitcoin and, in this case, also for Ether and all cryptocurrencies related to the universe of decentralized finance (DeFi) .

Of course, the greatest influence will be mainly on the two cryptocurrencies directly (Bitcoin and Ether), but we cannot fail to consider that the effects are also positive for other associated cryptocurrencies because, through this step that is being taken now, it opens There is a strong possibility in Asia of accessing this type of asset.

Although they have different profiles, people who invest in the USA and Asia have something in common: the investment potential could only become reality after authorization by regulators and availability by local financial institutions.

If you have been in the crypto universe for several years, you may find it a little strange that there are financial institutions nearby to unlock investments at a more amplified level (more people and with more resources), but remember: it is precisely this potential of people who fit in. at the “I want to invest, I just don’t know how” level that significant advances can occur in these markets.

It was one thing what we had when transactions with cryptocurrencies took place between parties who practically discovered the possibilities of this revolution together, it is quite another when the level of standardization achieved is so great that a person who had only heard about cryptocurrencies can actually buy and sell with the financial institution's app that you have been using for a long time.

The combination of new flows coming from American retail with the diverse possibilities (and not just in Bitcoin but also in Ether) that are now being released in Hong Kong point to positive winds for Bitcoin and Ether prices.

But, it is worth reinforcing: such positive winds not only blow the sails of these two cryptocurrencies, they also help the navigation of other associated projects and the crypto market as a whole.

Where else can we expect some spark from these ETFs?

Culturally, we see many differences between what we usually call the West and the East. One of these notable differences is the difference between savings and consumption. While in the Western world we are more tempted daily to expand consumption possibilities and we rely on certain welfare state structures that seek to ensure a more financially peaceful old age, in the East the great habit is the accumulation of resources with the aim of alleviating the financial situation of the next generations.

This cultural factor highlights an important aspect when it comes to investments made by people living in Asia: as the propensity to save with the aim of raising funds for the next generation is greater, every new investment possibility that is recognized as resilient enough to appear in traditional institutions in an easier way (like in an app in the palm of your hand) ends up generating interest and almost automatic demand.

The opening of this channel in Hong Kong is already stirring the spirits of the South Korean regulatory authority: this is another Asian country known for experiencing certain waves of attraction for investments in digital assets and, given that the recently authorized movement in Hong Kong has begun very actively in January and also that there have been Bitcoin ETFs authorized in the USA since January, questions have already been made to the South Korean regulatory authority about when this other country would take a position on the matter - whether allowing investment by its citizens or opening up the possibility of new ETFs in the country itself.

What should investors keep an eye on?

Unlike what was commonly said years ago, now the main focus of the crypto universe is not on the “future moment in which these technologies will begin to be adopted”, but on the extent to which they are already becoming a reality in the present time in a very direct way.

This non-negligible number of new American (and soon also Asian) demanders should justify positive adjustments in prices in the coming periods. It is worth investing to try to understand how this adoption could spread even further or be slowed down in its expansion on the Asian continent.

Apparently, the distant and utopian future that was widely imagined for the crypto universe begins to unfold as real at this moment. Taking a ride on this huge movement seems like a great idea!

#ETFBitcoin #ETFsApproval #BTC #sec #HongKong

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Image by Ryan Mac on Unsplash