Institutional crypto adoption continues as Hong Kong approves Bitcoin and Ethereum ETF

The crypto market regains upward momentum as Hong Kong has announced it has approved a Bitcoin (BTC) and Ethereum (ETH) Spot Exchange Traded Fund (ETF). The approval signals crypto adoption in the Asian market and fuels the ambitions of Hong Kong to be a leader in the cryptocurrency industry. The developments have resulted in an instant price relief rally from the broader crypto market. 

Cryptocurrency prices have been in the red for the last couple of days as geopolitical tension heightened. The BTC price saw a significant downturn after its local high on April 8 of around $72.500. In just days the price of the popular cryptocurrency fell to around $62.700, a decrease of over 14%. Other altcoins such as ETH experienced a similar crash, and the ethereum price even fell below $3.000 briefly, resulting in a brief crash of 21%. 

Markets react positive on new ETFs

However, the news of the ETF launch in Hong Kong sparks optimism in the crypto market. Prices rose sharply as investors expected the BTC and ETH Spot ETFs to introduce billions of capital from the Asian market. The bitcoin price managed to increase by 2,9% in value to a current level of $66.350. ETH managed to increase even more with a daily surge of over 6% bringing the ethereum price back up above the $3.250 level. 

Analyst predicts BTC rally

Analysts expect the new ETFs in the Asian market can further boost the bitcoin price to a new all time high. Currently the all time high of the largest cryptocurrency sits at $73.600, according to an analysis from CoinCodex the BTC price can rally in the coming 4 weeks to a level of nearly $86.000. This means a price increase of around 30% from current levels. CoinCodex seems less positive on the ETH price, as it expects its value to maintain at current levels for the coming month. 

Some analysts remain bearish on the bitcoin price even with the Bitcoin Halving coming in mere days. Experts indicate that the BTC price has rallied significantly in the past months and remains extended. It is a first in Bitcoins history that a new all time high has been reached before a Bitcoin Halving event, suggesting that investors are already pricing in the impact of the halving.


Posted

in

, ,

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *