Hong Kong’s approved spot Bitcoin (BTC) and Ethereum (ETH) ETFs have commenced trading with various conflicting views on their impact in the cryptocurrency market. On one hand, several commentators say it can boost the market out of the red zone as funds flow into these products.
The other side of the divide holds much skepticism as they opine inflows will not be as much to cause a major shift in crypto assets. At press time, the crypto market capitalization stands at $2.27 trillion, 1.8% down the previous day as asset liquidations continue. The weak sentiments have become a clog in the wheels of investors factoring a bull run.
Hong Kong Spot Bitcoin ETFs Sparks Debate
The first day of trading for newly approved Hong Kong’s spot Bitcoin and Ethereum ETFs saw $12 million in inflows, a figure significantly lower than was recorded in the United States. Bitcoin ETFs recorded a massive $4.6 billion in the first 24 hours, a fugue that pushed its price to new highs.
The slow start to Hong Kong’s Bitcoin ETF is 383 times below the United States. Putting into perspective, last year saw top-level institutional inflows to Bitcoin. Bitcoin price soared to $44,000 I. December on the back of anticipation alone.
Post approval, the price hit a new all-time high above $72,000 before present market corrections. The slow start in Hong Kong has led to analysts pointing to reduced low impact on the wider market. This is partly due to the ban in mainland China and other harsh policies.
Turning Point for Crypto ETFs
Despite the slow start, Hong Kong’s Bitcoin ETF is seen as a driving factor for more adoption in the future. The approval gives the asset wider acceptance among traditional investors. The move is pivotal as some Chinese investors look towards Bitcoin ETFs leading to more adoption.
Bitcoin price trading at $61,683 is a low compared to previous highs with bulls setting sight on another bull run. Hong Kong’s leaning toward crypto has been perceived as a test for mainland China. Whether or not this happens, the drive for the approval can affect institutional investors.
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Read More: Will Hong Kong Spot Bitcoin ETFs Drag Crypto From The Turmoil? | CoinGape
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