Wednesday, May 22, 2024

Bitcoin’s Price Seeks Rebound Following Week of Decline as Mainland China Eyes Entry into Hong Kong’s BTC ETF Market.

The price of bitcoin (BTC) is expected to slow throughout longer intervals, but it will rise dramatically during shorter times. The forerunner cryptocurrency is demonstrating strength, and traders are finding the Asian session to be very actionable.

Market mover for the daily digest: Mainland China desires to join the Bitcoin ETF trend in Hong Kong.

Monday’s positive Asian session for the price of Bitcoin was primarily due to the continued excitement surrounding the Hong Kong exchange-traded funds (ETFs). Although mainland Chinese cannot purchase anything related to virtual assets from China, according to a South China Morning Post story, 50% of attendees at the Bitcoin Asia conference in Hong Kong were from mainland China.

It sparks concern that trade agreements between China and Hong Kong could allow mainland investors to purchase spot BTC ETFs in Hong Kong by pointing to increased interest from mainland China. This is a remarkable step, considering that during the last three years, mainland China has been the largest purchaser of Hong Kong ETFs.

In addition to Asia, the story of Bitcoin ETFs is still influencing and accelerating US markets. According to recent research,

  • 3,600 shares of the BlackRock ETF are owned by UBS, the biggest bank in Switzerland, according to documents submitted to the US Securities and Exchange Commission (SEC).
  • Bracebridge Capital, a Boston-based company, disclosed that it owns $433 million worth of Bitcoin via ETFs.
  • In a recent SEC filing, Bank of Montreal reported its spot BTC ETF holdings.

The fact that institutional investors are beginning to increase their holdings in Bitcoin through the ETF indicates that the next stage of adoption, in which governments and institutions participate, is getting under way. With the creation of a website to track their national Bitcoin treasury, the El Salvadorian market is far ahead in this endeavor.

Funding rates remain flash-neutral elsewhere, suggesting a more robust market. In perpetual futures contracts, funding rates serve as a means of maintaining contract price parity with the current price of the underlying asset. In essence, these rates are a means of distributing trading positions between long and short traders.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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