Hong Kong approves Spot Bitcoin and Ethereum ETFs
Hong Kong approves Spot Bitcoin and Ethereum ETFs-There is a great news for crypto enthusiasts, Hong Kong has finally approved the spot Bitcoin and Ethereum ETFs (exchange-traded funds). The news comes just after the Securities and Futures Commission (SFC) of Hong Kong granted the approval for the launch of spot ETFs for Bitcoin and Ethereum.
With this Hong Kong becomes the first Asian country to approve spot ETFs of Bitcoin and Ethereum. Earlier, United States had approved the Bitcoin ETFs which led to over $12 Billion net inflows in just three months.
What is Spot Bitcoin ETF?
It means that the investors would be able to buy/sell bitcoin like stocks. The price movements of the Bitcoin can be now traced by the investors without actually owning it. The Spot Bitcoin ETF is thus a convenient way, for traditional investors, to participate in the crypto market.
What is Spot Ethereum ETF?
It is similar to the spot Bitcoin ETF, which means the trade in Ethereum coin like traditional stock market. Traditional investors can now buy/sell the Ethereum without understanding the underlying complexities of crypto market.
What is the Significance of Spot Bitcoin & Ethereum ETFs
The ground breaking approval of spot Bitcoin ETFs by Hong Kong and United States is holds important significance.
- Its approval means mainstream acceptance of digital assets lead by Bitcoin and Ethereum.
- Expansion of the crypto market.
- Buying and selling of Bitcoin and Ethereum like that of shares in stock market..
Impact of Spot ETFs on Bitcoins Future
The approval of spot Bitcoin and Ethereum approval by Hong Kong means that the funds can be invested in the bitcoin ETFs. In other words the inflow of money in the bitcoin and Ethereum increases.
This increases their demand which in turn boosts the price of these digital assets.
Further, the approval signifies the trust in the bitcoin. This may cause the other countries to accept bitcoin ETFs.