Hong Kong Approves BTC & ETH Spot ETFs, But Not Yet Launched; Expert Says Don’t Expect Much 

Bloomberg ETF expert explained why the existence of Bitcoin & Ethereum spot ETF products in Hong Kong may not bring a better inflow of money into the Bitcoin market. 

On 15 April 2024, The Hong Kong financial regulators approved Bitcoin & Ethereum spot ETF applications. In the next few weeks, these ETF products will trade on the stock exchanges. 

The approval of crypto spot ETF applications in the jurisdiction of Hong Kong played a vital role in injecting a high level of hype around cryptocurrencies across the world. 

On the same day, Eric Balchunas, senior ETF expert at Bloomberg, shared his opinion on these ETF products and said that we are overconfident with these ETFs because the market of China is very small for this crypto space. 

According to Eric, there are huge numbers of big investors in Mainland China but all of them are restricted from participating in these products, as the People Bank of China (PBoC) banned any kind of crypto-related activities from the country in late 2021. 

Eric believes that the market for these crypto ETF products will be nearly $50 Billion and in the initial phase capital flow will be up to $500 million. 

Overall, he said that it is going to impact the Bitcoin market positively but here we need to understand that the Hong Kong Bitcoin ETF market will be just like a baby over the US Bitcoin spot ETF market. 

Bitcoin price action 

The current trade price of Bitcoin is $63,208 & this trade price is 2.83% down over the last 24 hours. 

In the last few days, the Iran vs Israel conflict played a vital role in dumping the risk money market, including the Crypto market. 

Read also: Japan’s Leading Party Pushes for Urgent Cryptocurrency Tax Reform