Hong Kong Stock Concept Tracking | Buy coins like buying stocks! Bitcoin spot ETF approved in the US, these digital currency companies welcome good news (with concept stocks)
Hong Kong-listed concept stocks of digital currencies experienced a significant surge on January 11th, influenced by the news of the approval of Bitcoin spot ETFs in the United States. The U.S. Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETFs, including iShares under BlackRock. According to a survey, 72% of financial advisors stated that they would be more likely to invest in cryptocurrencies if spot ETFs were approved in the United States. The price of Bitcoin has risen from around $17,000 in January last year to approximately $46,000 currently. Compared to other countries, some countries have already approved applications for Bitcoin spot ETFs. Hong Kong has also been paying close attention to the development of the digital currency industry.
Zhitong App learned that on January 11th, Hong Kong stocks related to digital currencies experienced a significant increase. As of the time of writing, BC Technology Group (00863) rose by 13.75%, MEITU (01357) rose by 3.32%, and Xinhuo Technology Holdings (01611) rose by 1.96%. In terms of news, on January 10th, Eastern Time, the U.S. Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETFs. Influenced by the approval of Bitcoin spot ETFs in the United States, the price of Bitcoin spot rose by nearly 1.50%, approaching $47,000.
It is reported that the issuers of the approved Bitcoin spot ETFs are: Grayscale, Bitwise, Hashdex, iShares, Valkyrie, Ark 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, and Franklin. Among them, iShares is affiliated with the global asset management giant BlackRock.
Bitcoin ETF approval in the United States has always been a focus of global investors. According to a survey conducted by Nasdaq in 2022 on 500 advisors, about 72% of financial advisors stated that if spot ETFs are approved in the United States, they are more likely to invest in cryptocurrencies.
Driven by the anticipated approval of Bitcoin spot ETFs in the United States, the price of Bitcoin rose by nearly 160% in 2023. The price of Bitcoin increased from around $17,000 in January of last year to around $46,000 currently. January 10, 2024 is also the final deadline for the SEC to approve or reject spot Bitcoin ETFs.
In fact, outside of the United States, there have been countries that have approved applications for Bitcoin spot ETFs. In February 2021, Purpose Bitcoin ETF, listed in Toronto by Purpose Investments, became the first Bitcoin spot ETF in North America. In June 2021, the Brazilian Stock Exchange listed the first Bitcoin spot ETF in Latin America, launched by QRCapital.
Similarly, Hong Kong has always attached importance to the development of the digital currency industry and strives to become the capital of cryptocurrencies. In the past year, Hong Kong has frequently introduced policies in the virtual asset market.
In October 2022, as the financial center of Asia, Hong Kong launched the Policy Declaration on the Development of Virtual Assets in Hong Kong, which comprehensively determines that Hong Kong's future focus is on virtual assets. On June 1, 2023, the Securities and Futures Commission of Hong Kong announced that it would start accepting applications for Virtual Asset Service Provider (VASP) platform licenses. This is open to institutions that are already operating virtual asset businesses in Hong Kong. All centralized virtual asset exchanges operating in Hong Kong or promoting services to Hong Kong investors must obtain a license from the Securities and Futures Commission and be subject to its regulation. After the implementation of this system, there will be a one-year transition period for regulatory compliance.
On December 22, 2023, the Securities and Futures Commission of Hong Kong issued a joint circular on intermediary activities related to virtual assets and a circular on the recognition of funds investing in virtual assets. These circulars indicate that the Securities and Futures Commission has already approved virtual asset futures ETFs and is ready to accept applications for other funds involving virtual assets, including virtual asset spot ETFs.
As of now, only two virtual asset trading platforms have been approved on the official website of the Securities and Futures Commission of Hong Kong. They are OSL Exchange and HashKey Exchange. OSL Exchange obtained its license in December 2020, while HashKey obtained its license in November 2022.
However, it can be seen that the compliance journey of virtual assets in Hong Kong has entered the fast lane and has gained an initial advantage globally. In the future, Hong Kong will share its experience and lessons with the entire virtual asset industry, promoting the overall healthy development of the market.
According to a report by Standard Chartered Bank, if the related ETFs are approved, it will greatly change the game rules of Bitcoin, allowing institutional and retail investors to invest in Bitcoin without directly holding it. Just this year alone, it could attract $50 billion to $100 billion in funds and push the price of Bitcoin to $100,000. Other analysts believe that the inflow of funds in the next five years could reach nearly $55 billion.
Guosen Securities (Hong Kong) also pointed out in its research report that the approval of Bitcoin spot ETF applications is of great significance and impact on the cryptocurrency market and the global financial market. It indicates the recognition of cryptocurrencies by the traditional financial world and is expected to bring incremental funds. In addition, 2024 is the halving cycle of Bitcoin, combined with the latest minutes of the Federal Reserve's December meeting suggesting that rate hikes have been completed and rate cuts may occur in 2024. Under multiple favorable factors, it is expected that the cryptocurrency market, including Bitcoin, will perform well in 2024. It is recommended to pay attention to listed companies related to cryptocurrencies, including BC Technology Group.
Related concept stocks:
BC Technology Group (00863): The company is a digital asset and fintech company. Its OSL digital asset platform is the first and currently the only digital asset platform in Hong Kong that has been issued a license by the Securities and Futures Commission and has insurance coverage. It provides institutional and professional investors with services such as bulk brokerage, trading, custody, and settlement of digital assets.
MEITU (01357): In the past few years, the company has purchased Bitcoin and Ethereum. As of June 30, 2023, based on the then market prices, the fair value of the company's holdings of Ethereum and Bitcoin is approximately $57.41 million and $28.28 million, respectively. New Fire Technology Holdings (01611): The company, formerly known as Huobi Technology, is currently one of the world's largest cryptocurrency platforms. The company's virtual asset ecosystem is involved in digital asset management, cryptocurrency mining, cryptocurrency trading, trust and custody services, and more.