Bitcoin (COIN: $BTC) and other altcoins recently faced a major downturn amidst the Iran-Israel conflict, with Bitcoin down to 60k and Ethereum falling below $3000. However, prices have started to recover amidst the approval of spot Bitcoin and Ethereum ETF in Hong Kong.
On Monday, April 15, the Hong Kong Securities and Futures Commission approved both a spot BTC and Ethereum ETF. Numerous official statements have validated the approvals, encompassing submissions from entities like China Asset Management Co. (China AMC), Harvest Global Investments, Bosera International, and HashKey Capital.
Green Light For China’s AMC & Harvest Global
China Asset Management confirmed they received a green light from Hong Kong SFC to launch AMC products and digital asset management services for investors connected with spot Bitcoin and Ethereum ETFs. With this, investors will have a secure way to buy Bitcoin and Ethereum.
Furthermore, China AMC is also set to collaborate with OSL Digital Securities Co., LTD and BOC International Prudential Trusteeship Ltd to deploy the products and inaugurate ETFs.
Moreover, Harvest Global Investments also received approval from Hong Kong SFU for spot BTC and ETH Etfs. The company also highlighted that these ETFs will be issued in partnership with OSL.
The spot BTC and ETF approval came 3 months after the US SEC approved BTC ETFs in January 2024.
Furthermore, Singapore-based digital assets trading house company QCP Capitals said this approval will bring new opportunities and unlock institutional demand throughout Asia trading hours.
QCP mentioned, “Participants who wanted exposure have always been limited to US hours, but this now gives institutional investors an Asia-based alternative.” Further added, “We believe this will be bullish short term, but there are more important narratives and drivers such as macro events.”
Reports suggest Bosera International and HashKey Capital have also been approved to launch Bitcoin and Ethereum ETFs. The collaboration between Bosera and HashKey was unveiled on April 6 during the 2024 Hong Kong Web3 Festival.
Positive Response from Bitcoin and Ethereum
Bitcoin surged 2.4%, fueled by the approval, and was trading above $66K. However, it dropped to $63K as of 4:40 M in New York. The trading volume for Bitcoin is down by 31.25% in 24 hours to $45.68 billion.
Ethereum price has increased by 1.5% and is currently trading at $3,107. It quickly gained 5% in the morning, trading at $3,250. Other major altcoins like XRP, DOGE, and FIL are also recovering.
Should You Step Into the Crypto Market?
The crypto market has become volatile due to the conflict between Iran and Israel. However, it is progressing towards recovery. For long-term investors, now might be a good time to invest as the market recovers from its lowest support.
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