Hong Kong sets sights on Bitcoin, Ethereum ETFs: Will you see new highs?

•  Fresh spot BTC ETFs are on the cards in the Far East.
• A spot ETH ETF approval might be seen first in Hong Kong, given the current developments.

The introduction of a Bitcoin [BTC] spot ETF is no longer a novel development in the United States, and it is anticipated that a spot Ethereum [ETH] ETF will soon follow suit.

Nevertheless, institutions in Hong Kong are currently strategizing to submit applications for both BTC and ETH ETFs. This move has the potential to attract additional capital inflow for these assets.

Hong Kong eyeing spot Bitcoin and Ethereum ETFs

Local reports from Hong Kong suggest that institutions in the region are actively seeking approvals for spot Bitcoin ETFs.

According to the reports, there is a prevailing sentiment among institutions and traders that they are lagging, especially with the United States having already approved 11 spot BTC ETFs. 

However, there are indications that this push for spot Bitcoin ETF approvals in Hong Kong may expedite the approval process for spot Ethereum ETFs, potentially putting them ahead of the United States in that aspect.

The report also notes ongoing serious discussions surrounding spot ETH proposals.

Ten institutions have submitted applications for spot BTC ETFs. If these applications receive approval, they could contribute to the ongoing institutional fund inflow that Bitcoin is currently experiencing.

Furthermore, the early approval of spot ETH applications not only brings more funds into the Ethereum market but may also influence discussions on the approval of ETH ETFs in the United States.

The current state of U.S. spot BTC ETFs

AMBCrypto’s examination of key metrics for the spot Bitcoin ETF on Coinglass revealed significant growth since receiving approvals.

Analyzing the flow data shows predominantly positive inflows, with only three days standing out as exceptions.

The largest outflow occurred on the 1st of March, totaling over $311 million, while the highest inflow was recorded on the 5th of March, reaching over $965 million. 

Source: Coinglass

Chart analysis indicates that the highest volume in the ETF’s history occurred on the 6th of March, reaching almost $13 billion. As of press time, the volume stood at around $9.1 billion.

Moreover, the spot BTC ETF’s market cap has surged to over $58 billion, with Assets under Management (AUM) exceeding $55 billion at the time of the report.

These metrics collectively illustrated the notable growth and increased investor interest in the spot Bitcoin ETF market since its approvals.

Bitcoin and Ethereum cross into new price zones

AMBCrypto’s look at the daily timeframe for Bitcoin and Ethereum revealed that both assets have achieved new price levels. Bitcoin’s chart showed a 2.7% increase, with the asset trading at over $70,000 at press time.

This marked the first time in over two years that BTC has reached this price level. Also, it was occurring a few months after the approval of spot ETFs in the United States. 

Additionally, Ethereum has broken into the $4,000 price range at the time of writing. The chart showed a gain of over 3%, placing it slightly above $4,000.

Realistic or not, here’s ETH market cap in BTC’s terms

Similar to Bitcoin, this marked the first time since 2021 that Ethereum has reached such a price level.

Source: Trading View

Both assets are currently in the early stages of their bull runs, and the potential approval of spot ETFs in Hong Kong could further propel their prices to new highs.