Bitcoin

‘Very Important’ – Bitcoin Price Is Suddenly Poised for a ‘Massive’ U-turn in China’s Crypto ETF

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Bitcoin
Bitcoin
and cryptocurrencies have exploded this year, fueled by an earthquake of spot bitcoin exchange-traded funds (ETFs) on Wall Street (that may just be beginning).

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The price of bitcoin has returned to its 2021 peak, pushing crypto to the top of the political agenda It is causing billionaire Mark Cuban to issue a serious crypto warning to President Joe Biden.

Now, as Twitter founder Jack Dorsey reveals his plan to boost the price of bitcoinAttendees at a bitcoin conference in Hong Kong have sparked speculation that Hong Kong’s much-touted spot bitcoin ETFs could eventually be opened to mainland Chinese investors.

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China President Xi Jinping led a crypto crackdown in 2021 but allowed bitcoin and ethereum spot… [+] exchange-traded funds (ETFs) to trade in Hong Kong – following in the footsteps of Wall Street, which acquired a fleet of spot bitcoin ETFs in January.

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“What I’m optimistic about is that with these rules and regulations now in place, Hong Kong can actually find a way to be that bridge from China to bitcoin and the greater crypto ecosystem in a way that is safer, more controlled or regulated,” Ben Gagnon, director of mining at Canada-based Bitfarms, counted the South China Morning Post on the sidelines of the Bitcoin Asia conference in Hong Kong, adding that Hong Kong’s bitcoin and ethereum ETFs could be a “channel for Chinese investors.”

Conference organizer David Bailey, chief executive of BTC Inc, owner of Bitcoin Magazine, told SCMP that the Bitcoin and Ethereum ETFs recently approved in Hong Kong are “very important” as they use the “in-kind” redemption model , rather than the Wall Street model. Bitcoin ETFs, the so-called “money creation” model. Bailey also said that bitcoin ETFs are a “huge opportunity for Hong Kong.”

Speaking at Bitcoin Asia, the chief executive of Harvest, one of the companies offering a spot bitcoin ETF in Hong Kong, said he intends to open the bitcoin ETF to mainland Chinese investors through the ETF bridge program in the next two years. “if everything goes well”, SCMP reported.

Hong Kong’s bitcoin ETFs have had a muted reaction since their debut last month, compared to the huge success of Wall Street’s bitcoin ETFs.

This week, Hong Kong’s six bitcoin and ethereum spot ETFs recorded their largest net outflows since their launch with the three bitcoin spot ETFs – managed by China Asset Management (ChinaAMC), Harvest and Bosera and HashKey – recording a daily net outflow combined output of just over 500 bitcoins on Monday, an acceleration from Friday’s outflow of just under 100 bitcoins, according to data from SosoValue reported by The Block.

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The price of bitcoin has recovered after falling prices in 2021, pushing the price of bitcoin to over… [+] $70,000.

Forbes Digital Assets

In recent weeks, Wall Street’s spot bitcoin ETFs have also stagnated, with U.S. spot bitcoin ETF trading volumes falling to $7.4 billion last week, compared to $11 billion for last week. Wall Street’s fleet of bitcoin ETFs saw inflows last week after four consecutive weeks of outflows, according to data from CoinShares.

“The recent volatility in daily net flows into US bitcoin ETFs suggests there is mixed investor sentiment, indicative of a near-term floor for the price to be reached,” analysts at Tether-linked cryptocurrency exchange Bitfinex wrote. in a note sent by email.

In the short term, other bitcoin price analysts are feeling bearish, although many remain optimistic about bitcoin’s long-term prospects.

“Without a catalyst to spur a rally, I continue to expect it to fall into the $50,000 region,” John Glover, Ledn’s chief investment officer, said in emailed comments, adding that he expects the price of bitcoin to rise to around of US$92 thousand per bitcoin. after diving.

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