Bitcoin has recently experienced a price rebound following a weekend crash triggered by concerns over escalating tensions in the Middle East potentially leading to a broader conflict. The bitcoin price has surged to approximately $66,000 per bitcoin after dipping close to $60,000 on Saturday. This resurgence comes on the heels of the introduction of several new Wall Street spot bitcoin exchange-traded funds (ETFs), which have significantly boosted the bitcoin price amid speculations of a potential rapid devaluation of the U.S. dollar.
Following a stark inflation warning issued by a top Federal Reserve official, several major financial institutions in Hong Kong hinted at the approval of their spot bitcoin and ethereum ETF applications by the Securities and Futures Commission (SFC). While there has been no official confirmation from the SFC, reports indicate that China Asset Management, Bosera Capital, and Harvest Global have disclosed their approval to list spot bitcoin and ethereum ETFs in Hong Kong.
The move by Hong Kong to potentially allow spot bitcoin ETFs has been viewed as a step towards establishing itself as a progressive financial hub in the region. Industry experts believe that this decision could attract more institutional investors and capital inflows into the cryptocurrency market across Asia, leading to enhanced liquidity, improved price discovery, and increased market stability.
Speculations are rife among crypto investors that both the U.S. and Hong Kong will vie for crypto inflows into their respective funds, setting the stage for a competition for capital between the two regions. The recent surge in the bitcoin price can be largely attributed to the introduction of a series of spot bitcoin exchange-traded funds on Wall Street, which have garnered significant attention from investors.
The approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) earlier this year has seen over $50 billion in assets under management flowing into these funds as investors seek exposure to bitcoin after years of application rejections. Notable financial giants such as BlackRock and Fidelity have emerged as leading bitcoin ETF issuers, amassing substantial assets under management of approximately $15 billion and $9 billion, respectively.
