Key Points
- Hong Kong's Securities Regulatory Commission (SFC) may approve the first batch of spot Bitcoin ETFs ahead of Bitcoin's halving event.
- The approval could significantly increase Bitcoin buying demand among both retail and institutional investors.
Hong Kong's Securities Regulatory Commission (SFC) could potentially approve the first batch of spot Bitcoin exchange-traded funds (ETFs) before the upcoming Bitcoin halving event. This decision could serve as a significant catalyst for Bitcoin's halving rally.
Bitcoin ETFs Approval in Hong Kong
The SFC might greenlight the first batch of spot Bitcoin ETFs by April 15, days before the halving event that is set to decrease the supply issuance rate of Bitcoin. According to local news reports, the SFC has accelerated the approval process for four spot Bitcoin ETFs. This could potentially increase buying demand for Bitcoin, offering exposure to both retail and institutional investors in Hong Kong.
Crypto entrepreneur and investor Lark Davis has suggested that the Hong Kong regulators might approve both Bitcoin and Ether ETFs on April 15. After the approval, it will take approximately two weeks to finalize ETF listing procedures on the Hong Kong Stock Exchange.
Impact on Bitcoin's Post-Halving Bull Run
The approval of the first spot Bitcoin ETFs in Hong Kong could trigger Bitcoin's post-halving rally, according to Herbert Sim, COO of crypto exchange Websea. He believes that the upcoming Bitcoin ETF approval in Hong Kong could increase institutional demand and inflows created by large U.S. ETF issuers like BlackRock.
Investors holding at least 10,000 BTC are accumulating Bitcoin at the current price level, anticipating the approval next week. Bitcoin ETF inflows have significantly contributed to Bitcoin's price rally. By mid-February, Bitcoin ETFs accounted for about 75% of new investment in Bitcoin as it crossed the $50,000 mark.
Bitcoin's price action has been closely correlated with the net Bitcoin ETF inflows, as noted by Thomas Fahrer, the co-founder of Apollo.
