Bitcoin ETF Net Total Inflow Surpasses $91.30 m Data from Coinglass Reveals

According to the latest data from a data analytics platform, CoinGlass, there has been a significant inflow into Bitcoin (ETFs). The net total inflow amounted to 1.29K BTC, equivalent to $91.30 million.

This surge in Bitcoin ETF inflows suggests that investors have a strong appetite for exposure to the leading cryptocurrency.

Potential Drivers of the Inflow

One of the key drivers behind this influx of capital into Bitcoin ETFs could be the growing institutional interest in the cryptocurrency market.A recent report suggests that Hong Kong is poised to approve spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) on Monday.

If the listing details are worked out in time with the Hong Kong Exchanges & Clearing (HKEX), the products could be launched by the end of the month. The first to receive approvals is expected to be a spot Bitcoin ETF from Harvest Global Investments.

This is a significant asset management company in China and a Bosera Asset Management (International) Co. and HashKey Capital product. However, the approval timeline remains subject to last-minute changes.

The approval of ETF products in Hong Kong is a significant market-moving event for cryptocurrencies. This could establish the city as Asia's leading digital asset hub.In comparison, the United States approved spot Bitcoin ETFs in January, leading to a record price rally that saw Bitcoin hit $73,000.

However, the U.S. has not yet approved Ether ETFs, and expectations are high for the approval of spot Ether ETF products.

Such an approval could also have far-reaching implications for the cryptocurrency market.For instance, it could drive increased institutional investment and legitimize digital assets as a mainstream asset class.

Hong Kong Spot Bitcoin ETFs Could Unlock $25 Billion in Demand from Chinese Investors

Reports from a crypto services provider, Matrixport, suggested that the Hong Kong Spot Bitcoin ETF approval may unleash up to $25 billion in demand from mainland Chinese investors.

This is due to the Southbound Stock Connect program, which allows qualified mainland Chinese investors to access eligible shares listed in Hong Kong.

Matrixport estimated that the unused annual quota of the Southbound Connect program is approximately HK$100-200 billion ($15-25 billion).

So, if these Bitcoin ETFs are approved without restrictions, this capital could be channeled into them.

The firm noted that mainland Chinese funds have been applying to issue spot Bitcoin ETFs through their Hong Kong subsidiaries. It also mentioned that mainland China seems interested in diversifying into alternative assets, as evidenced by the recent surge in gold prices in Shanghai.

As such, approval of a Spot Bitcoin ETF could provide another alternative for Chinese investors, thereby increasing the product's potential demand by an estimated $25 billion.

Meanwhile, the city's market regulator, the Hong Kong Securities and Futures Commission (SFC), has not commented on the approval reports.

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