Key Points
- Bitcoin and Ether prices rise as Hong Kong preliminarily approves local spot crypto ETF applications.
- The approval opens spot investment channels for Bitcoin and Ether, marking their mainstream acceptance.
Bitcoin and Ether prices saw a surge on Monday afternoon in Asia. This rise came after Hong Kong gave preliminary approval to local spot crypto exchange-traded fund (ETF) applications.
Price Recovery and ETF Approval
The price of Bitcoin rose 2.8% to $66,425, while Ether gained 5.2% to $3,252 in the past 24 hours. This happened as of 4:15 p.m. in Hong Kong.
The two largest cryptocurrencies and most other tokens recovered after a mass selling of crypto assets over the weekend. This was triggered by Iran’s drone attack on Israel. Bitcoin briefly fell below $62,000, while Ether also momentarily dropped below $3,000.
The GMCI 30, which measures the performance of a selection of the top 30 cryptocurrencies, gained 4.6% in the last 24 hours.
Hong Kong’s Involvement
The price recovery coincided with the Hong Kong Securities and Futures Commission (SFC) giving in-principle approval to a number of spot crypto ETF applications from local financial institutions. This list includes China Asset Management, Bosera Asset Management, and HashKey Capital, along with Harvest Global Investments.
These new ETFs from Hong Kong institutions will open spot investment channels for not only Bitcoin but also Ether. This is significant as Ether has not yet been approved in the U.S.
The approval of these ETFs signifies that Bitcoin and Ether are becoming mainstream assets. As Joseph Young, co-founder of Decentralised Gaming Ventures, puts it, “This is a game changer.” The SFC did not immediately respond to a request for comment.
