As Hong Kong edges closer to approving its first spot in Bitcoin ETFs, investors' anticipation builds. The Hong Kong Securities Regulatory Commission may greenlight these pivotal funds by April 15, potentially catalyzing a significant Bitcoin rally ahead of the cryptocurrency's upcoming halving event.

Hong Kong Set to Approve First Bitcoin ETFs, Boosting Crypto Accessibility Ahead of Halving

In a recent report by Cointelegraph, The Securities Regulatory Commission of Hong Kong (SFC) could approve the first batch of spot Bitcoin ETFs by April 15, just days before the Bitcoin halving, which will reduce the supply issuance rate of BTC.

According to local media reports, the Hong Kong regulator has accelerated the approval process for four spot Bitcoin ETFs. The potential approval could increase the buying demand for Bitcoin by providing exposure to retail and institutional investors in Hong Kong.

Hong Kong regulators may approve Bitcoin and Ether ETFs on April 15, according to crypto entrepreneur and investor Lark Davis, who wrote in an April 12 X post, “Hong Kong likely to approve BOTH Bitcoin and Ethereum spot ETFs as soon as Monday! China is about to start bidding the same week the Bitcoin halving is happening!”

After the securities regulator approves the initial set of spot Bitcoin ETFs, the Hong Kong Stock Exchange will finalize ETF listing procedures, which will take about two weeks.

Anticipation of Hong Kong Bitcoin ETFs Fuels Market Optimism, Mega Whales Accumulate

Herbert Sim, chief operating officer of crypto exchange Websea, told the source that approving the first spot Bitcoin ETFs in Hong Kong could catalyze Bitcoin's post-halving rally.

“Halving is not the only thing to look out for in the price action. But rather the upcoming Bitcoin ETF approval in Hong Kong, which also happens next week. The big banks of China will all have to start buying Bitcoin themselves too.”

Sim stated that Hong Kong-based ETFs will only add to the institutional demand and inflows generated by large U.S. ETF issuers such as BlackRock, which he anticipates will continue.

“And with this supply cut from the Bitcoin Halving, prices will definitely soar,” he added.

According to popular crypto commentator Bitcoin Munger's April 12 X post, large investors, or so-called mega whales, who own at least 10,000 BTC, are accumulating Bitcoin at the current price level in anticipation of next week's approval.

“The only cohort that is net-accumulating Bitcoin is the largest whales (>10k). Just ahead of Hong Kong ETF approvals and the halving. A positive contrarian signal if I had to guess.”

ETF inflows have been a key driver of Bitcoin's price increase. According to CryptoQuant research, by February 15, Bitcoin ETFs accounted for roughly 75% of new investments in the world's largest cryptocurrency, which had surpassed $50,000.

According to Thomas Fahrer, co-founder of Apollo, Bitcoin's price action has been closely correlated with net Bitcoin ETF inflows.

“I would have thought it was extremely obvious that ETF flows are driving Bitcoin [price]…”

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