Bitcoin Stays Sub $70,000 As Hong Kong Readies April-End ETF Launch
10 April 2024 - 5:45PM
NEWSBTC
The Bitcoin price has seen a notable fluctuation, briefly
surpassing $72,500 on Monday before dipping below the $70,000
threshold on Tuesday. This movement can be attributed to a risk-off
sentiment among investors, largely in anticipation of the latest US
Consumer Price Index (CPI) figures today. Following a low of
$68,200 on Tuesday, Bitcoin managed a slight recovery, stabilizing
above $69,400 at the time of reporting. Concurrently, the Hong Kong
Securities and Futures Commission (SFC) has updated its registry of
virtual asset management funds early on April 10. Notably, the SFC
is poised to announce the inaugural list of four Bitcoin spot
Exchange Traded Funds (ETFs) on April 15, as reported by Tencent
News. This announcement marks a significant milestone, setting the
stage for the ETFs’ launch on the Hong Kong Stock Exchange by the
end of April. Despite the magnitude of this news, the immediate
market reaction has been muted. Hong Kong To Launch Spot Bitcoin
ETFs By End Of April According to a Tencent News report, Harvest
International Asset Management and Huaxia Funds (Hong Kong) Limited
have been officially approved to manage virtual assets, signaling
their entry into the cryptocurrency sector in Hong Kong. This
development is significant as it introduces mainland China’s
leading public fund companies into Hong Kong’s virtual assets
industry. Currently, there are 18 funds in Hong Kong authorized to
manage cryptocurrency assets, with Harvest International and Huaxia
Fund being among the first public funds to venture into this space.
Related Reading: Bitcoin Nears Two Important On-Chain Levels: What
Happened Last Time Harvest International emerged as the pioneer in
submitting a proposal for a spot Bitcoin ETF in Hong Kong as of
January 26. Following this initial submission, both companies have
now secured the necessary qualifications to issue
cryptocurrency-related fund products, including Bitcoin spot ETFs.
This move enables retail investors to access these products through
the Hong Kong Stock Exchange. The urgency to update the virtual
asset management funds list stems from the SFC’s plan to unveil the
first batch of Bitcoin spot ETFs by April 15. The initial batch was
anticipated to include Huaxia Fund, Bosera Fund, and Value Partners
Financial, alongside Harvest International. However, Bosera and
Value Partners were notably absent from the updated list due to
their lack of an independent responsible officer (RO) qualified in
cryptocurrency asset management. These funds are reportedly
collaborating with Hashkey Capital and VSFG, both qualified crypto
asset management organizations. Related Reading: Ethena’s (ENA)
Crucial Role In Bitcoin Bull Market: Expert Identifies Critical
Factors For Sustainable Growth In preparation for the ETF launch,
some applicants, including Huaxia Fund, have been rapidly
assembling dedicated teams and submitting their applications by
early March. Huaxia’s swift approval by the SFC, achieved in just
two weeks, underscores the rapid pace of development in this area.
The application process for a Bitcoin spot ETF in Hong Kong
involves extensive collaboration with over 20 institutions,
including custodian banks and market makers. Following the SFC’s
approval, the Hong Kong Stock Exchange is expected to spend
approximately two weeks preparing for the ETF launch. Notably, this
move opens up the crypto sector to Chinese retail investors, coming
three months after the US SEC’s approval of the first batch of
Bitcoin spot ETFs on January 11. At press time, BTC traded at
$69,484. Featured image created with DALL·E, chart from
TradingView.com
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