China Approves New Cryptocurrency ETFs, Fueling Expectations for Price Surge in Bitcoin, Ethereum, and XRP

Hong Kong and the United States are gearing up for a battle for cryptocurrency ETF dominance as China approves new ETFs for Bitcoin and Ethereum. The approval of these ETFs has sparked expectations for a significant price surge in not only Bitcoin and Ethereum but also XRP.

According to a recent report by CoinGape, Bosera Capital, Harvest Global, and China Asset Management have been given the green light to sell spot Ethereum and Bitcoin ETFs in Hong Kong. This development has led cryptocurrency investors to anticipate a competition between Hong Kong and U.S. markets for cryptocurrency inflows into their respective funds.

The demand for these ETFs is expected to surpass supply, potentially driving up the prices of Bitcoin, Ethereum, and XRP. In the U.S., more than $50 billion in assets under management have already been pulled into the new spot Bitcoin ETFs approved by the SEC in January. Wall Street giants BlackRock and Fidelity have emerged as the two largest issuers of these new Bitcoin ETFs, with assets under management totaling approximately $15 billion and $9 billion, respectively.

Despite the success of ETFs in the U.S., mainland Chinese funds are unlikely to have access to Hong Kong-listed Ethereum and Bitcoin ETFs due to China’s strict regulations on cryptocurrency. The Southbound Stock Connect program, which promotes cross-border investment between mainland China and Hong Kong, excludes digital currency items due to China’s stance on cryptocurrency risk.

Meanwhile, Bitcoin is facing resistance levels as its price decline enters the third day, despite initial recovery efforts. The market is closely watching spot ETF inflows and the imminent halving for potential price movements. However, bearish traders believe that macroeconomic and industry variables could hinder Bitcoin’s rally.

New research from CryptoQuant suggests that Bitcoin’s price may face challenges due to funding rates and correction levels. The market leader is currently trading around $63,300, with bulls and bears vying for control amidst market uncertainty.

As the battle for cryptocurrency ETF dominance heats up between Hong Kong and the U.S., investors are eagerly watching for potential price surges in Bitcoin, Ethereum, and XRP. Stay tuned for more updates on this developing story.