China may be about to explode in XRP, Ethereum, and Bitcoin prices with the latest launch of ETF. Forbes reports that crypto investors already anticipate that Hong Kong and the United States will battle for cryptocurrency inflows into their respective funds due to the revelations.
China To Inflate BTC, ETH, and XRP Price
Bosera Capital, Harvest Global, and China Asset Management have announced that they have received approval to sell spot Ethereum and Bitcoin ETFs in Hong Kong. Forbes highlights that crypto investors already anticipate that Hong Kong and the United States will battle for cryptocurrency inflows into their respective funds due to the revelations.
The demand that these ETFs are going to create might be way more than what is in supply. This could create a surge in price for Bitcoin, Ethereum, and even XRP.
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Bitcoin ETF’s Success in The US
Forbes states that over $50 billion in assets under management have been drawn to the fleet of new spot Bitcoin ETFs allowed by the U.S. Securities and Exchange Commission (SEC) in January. Ever since the approval came, investors flocked to gain exposure to Bitcoin after ten years of application denials.
With assets under management of about $15 billion and $9 billion, respectively, Wall Street behemoths BlackRock and Fidelity have emerged as the two biggest of the new Bitcoin ETF issuers.
With the success of ETFs in the US, the likelihood of these ETFs performing exceptionally well in Hong Kong is being priced in by market participants.
Will Mainland China Purchase Bitcoin ETFs?
As of right now, the territory is completely prohibited from cryptocurrency in Mainland China. Thus, at this point, it appears unlikely that it will have access to Ethereum and Bitcoin ETFs that are listed in Hong Kong. Hong Kong issuers have confirmed that regulatory restrictions prevent mainland Chinese funds from purchasing exchange-traded funds (ETFs) related to cryptocurrencies.
Recent correspondence from Hong Kong-based ETF providers has cleared up misconceptions about the investing prowess of mainland Chinese investors taking part in the Southbound Stock Connect initiative. Because of China’s stance on cryptocurrency risk, the Southbound Stock Connect program—which was designed to encourage cross-border investment between mainland China and Hong Kong—does not include do dedo currency products.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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