Key Points

Hong Kong’s Bitcoin ETFs could trigger flows of up to $25 billion, according to Matrixport.
Hong Kong Securities and Futures Commission (SFC) has urgently updated the list of virtual asset management funds on April 10.
Bitcoin ETFs are expected to get approval in Hong Kong on April 15.

Hong Kong is soon ready to approve spot Bitcoin ETFs after the Securities and Futures Commission (SFC) updated the list of virtual asset management funds on April 10. As already reported, this move anticipates the announcement of the first batch of Bitcoin ETFs in Hong Kong, which is scheduled for April 15.

Hong Kong is one of the world’s most important financial centers and a gateway for outbound Chinese investments, and the move regarding Bitcoin ETFs would hold significant importance for the crypto industry.

$25 billion could flow in BTC ETFs in Hong Kong

According to the latest reports coming from Singapore-based crypto services provider Matrixport, such investments could bring in up to $25 billion in demand from Chinese investors via the Southbound Stock Connect program.

The Southbound Stock Connect allows qualified mainland Chinese investors to gain access to eligible shares listed in Hong Kong.

In today’s report, Matrixport said that the likely approval of Hong Kong-listed Bitcoin spot ETFs could attract a few billion dollars of capital. The mainland investors could take advantage of the Southbound Connect program, which can allow up to 500 billion RMB per year in transactions.

The report also added that considering the potential available capacity, such a move would trigger up to 200 billion Hong Kong dollars of available capacity for the Bitcoin ETFs. This would mean $25 billion.

360MarketIQ notes that during the past three years, the flows have been HK$450 billion, HK$400 billion, and HK$320 billion – this means that the targets fell short of the limit by HK$100 to HK$200 billion.

Matrixport continued and explained that there is potentially HK$100 billion to HK$200 billion in quota left for Bitcoin ETFs, and this is if the approval will occur with no restrictions. HK$200 billion means $25 billion.

After the approval of the first batch of Bitcoin ETFs set to take place on April 15, the Hong Kong Stock Exchange (HKEX) would normally need about two weeks to prepare for product listing. But, the process could happen sooner, in about 10 days, according to details communication and planning between the BTC ETF project and the HKEX.

If everything goes as planned, Hong Kong spot Bitcoin ETFs would arrive about three months after their approval in the US which has seen a huge success so far, with BlackRock’s BTC ETF, IBIT, as leader.

Bitcoin maintains $70k 8 days ahead of the halving

Bitcoin is now 8 days ahead of the halving event, which is scheduled to take place on April 20.

After a rocky day for Bitcoin when the coin failed to maintain the $69k level due to the hot CPI report announcement, BTC is now trading above the $70k level.