‘Very Important’—The Bitcoin Price Is Suddenly Braced For A ‘Massive’ China ETF Crypto Flip
Bitcoin
Bitcoin
The bitcoin price has returned to its 2021 peak, propelling crypto to the top of the political agenda and causing billionaire Mark Cuban to issue a serious crypto warning to president Joe Biden.
Now, as Twitter founder Jack Dorsey reveals his plan to turbocharge the bitcoin price, attendees of a Hong Kong bitcoin conference have sparked speculation the much-hyped Hong Kong spot bitcoin ETFs could eventually be opened up to mainland China investors.
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China’s president Xi Jinping led a crypto crackdown in 2021 but has allows bitcoin and ethereum spot … [+]
“What I’m optimistic about is, with these rules and these regulations now in place, Hong Kong actually may find a way to be this bridge for China to bitcoin and to the greater crypto ecosystem in a way that’s more safe, more controlled or regulated,” Ben Gagnon, chief mining officer at Canada-based Bitfarms, told the South China Morning Post on the sidelines of the Bitcoin Asia conference in Hong Kong, adding the Hong Kong bitcoin and ethereum ETFs could be a “conduit for Chinese investors.”
Conference organizer David Bailey, chief executive of BTC Inc which owns Bitcoin Magazine, told the SCMP the recently approved bitcoin and ethereum ETFs in Hong Kong are “very important” as they use the “in-kind” redemption model, rather than the Wall Street bitcoin ETFs so-called “cash creates” model. Bailey also said the bitcoin ETFs are a “massive opportunity for Hong Kong.”
Speaking at Bitcoin Asia, the chief executive of Harvest, one of the companies that offers a spot bitcoin ETF in Hong Kong, said it is looking to open up the bitcoin ETF to mainland China investors via the ETF bridge program within the next two years, “if everything goes well,” SCMP reported.
Hong Kong’s bitcoin ETFs have seen a muted reaction since their debut last month compared to the huge success of the Wall Street bitcoin ETFs.
This week, Hong Kong’s six spot bitcoin and ethereum ETFs recorded their largest net outflows since their launch with the three spot bitcoin ETFs—managed by China Asset Management (ChinaAMC), Harvest, and both Bosera and HashKey—saw a combined daily net outflow of just over 500 bitcoin on Monday, an acceleration from Friday’s outflow of just under 100 bitcoin, according to data from SosoValue reported by The Block.
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The bitcoin price has bounced back following a 2022 price crash, pushing the bitcoin price to over … [+]
Over recent weeks, Wall Street’s spot bitcoin ETFs have also stalled with trading volumes for U.S. spot bitcoin ETFs declining to $7.4 billion last week, compared to the previous week’s $11 billion. The fleet of Wall Street bitcoin ETFs saw inflows last week after four consecutive weeks of outflows, according to CoinShares data.
“The recent volatility in daily net flows into the U.S. bitcoin ETFs suggests that there is mixed investor sentiment, indicative of a near-term floor for the price being reached,” anaylsts at the Tether-linked crypto exchange Bitfinex wrote in an emailed note.
In the short term, other bitcoin price analysts are feeling bearish, though many remain upbeat about bitcoin’s long term prospects.
“Without a catalyst to spur a rally I continue to expect to dip into the mid-$50,000 region,” John Glover, chief investment officer at Ledn, said in emailed comments, adding he expects the bitcoin price to then climb to around $92,000 per bitcoin after the dip.
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