Hong Kong is preparing to give its approval for a Bitcoin ETF next week, a move that could attract a new wave of Chinese investors seeking alternative investment options, according to Reuters. Experts predict that the involvement of the Asian market could potentially drive Bitcoin prices to reach $90,000. A Bitcoin ETF provides a widely recognized investment vehicle that offers a safe way to enter the Bitcoin market.
Since the launch of a Bitcoin ETF in the United States, these products have attracted billions of dollars in investments. BlackRock’s Bitcoin ETF, for example, has already accumulated $20 billion in assets, as reported by CNF. The increasing popularity of these ETFs has contributed to Bitcoin reaching a new all-time high of $75,000.
It has been reported that Hong Kong regulators are preparing to approve the country’s first Bitcoin ETF on April 15th. Market commentator Collin Brown anticipates the participation of major Chinese investment firms such as Harvest Fund with over $230 billion in assets and China Southern Fund with a massive $284 billion. The involvement of these firms would significantly boost market prices.
Markus Thielen, founder of Singapore-based analytics firm 10x Research, believes that the approval of a Bitcoin ETF in Hong Kong will offer Chinese investors an alternative to real estate and stocks, which have recently faced price declines. He noted that with 70% of Chinese individuals owning property, there are limited investment alternatives available, making Bitcoin an attractive option.
China has demonstrated a strong interest in Bitcoin in the past, particularly during the 2013 bull market when BTC saw a significant price surge from $10 to around $1,000. However, the Chinese government later banned Bitcoin, causing the rally to come to a halt.
These developments come just before the Bitcoin halving event scheduled for April 20th. This event historically attracts significant investment interest, especially from institutional investors.
At the time of writing, BTC has experienced a 2.6% surge in the last 24 hours, reaching a price of $70,750. This recent price increase indicates a healthy rebound after briefly testing the $68,000 support level earlier in the week. On the weekly chart, BTC has gone up by nearly 7%, signaling the start of a bullish trend.
Experts believe that this year could be one of the most bullish cycles in Bitcoin’s history, driven by the upcoming halving event and institutional interest. They predict that Bitcoin could reach a price target of $90,000 to $150,000 by the end of this cycle, which would also have a positive impact on the rest of the crypto market.
