Forbes: Shock Leak From China Set To Drive XRP Price

Recent market recovery has ignited optimism in the cryptocurrency space, with industry experts like Forbes Senior Contributor Billy Bambrough highlighting positive signs.

In a recent report, Bambrough points to the swift rebound from last weekend’s market dip, triggered by anxieties surrounding the Middle East conflict. Bitcoin has recovered from a low of almost $60,000 to its current position of $65,061. Similarly, XRP has regained the $0.5 level after falling below it.

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Analysts attribute a significant portion of this upswing to the emergence of Wall Street Bitcoin spot exchange-traded funds (ETFs). These investment vehicles offer a regulated way for investors to gain exposure to Bitcoin without directly holding the underlying asset. Their arrival has instilled confidence in the market, leading to a broader price increase across cryptocurrencies.

Looking ahead, Bambrough suggests that developments in the Chinese market could provide another catalyst for XRP and other digital assets. Leaks from various financial institutions in Hong Kong have sparked speculation about potential approval for spot Bitcoin and Ethereum ETFs by the Securities and Futures Commission (SFC).

Notably, China Asset Management, Harvest Global, and Bosera Capital have alluded to receiving the approval for their applications. However, these claims have not been substantiated by an official announcement from the SFC. Interestingly, social media posts from these institutions regarding the approval have also been deleted.

According to the report, industry pundit Michael Silberberg, commenting via email, emphasized Hong Kong’s ambition to solidify its position as a leading financial hub. He observed that Hong Kong’s move to allow spot crypto ETFs comes just a year after establishing regulatory clarity for cryptocurrency exchanges.

Silberberg anticipates this decision to influence global regulatory frameworks and attract significant capital inflows from Asia, particularly institutional investors. Additionally, he suggests that this development could enhance market stability, improve price discovery, and increase liquidity.

The potential approval of these ETFs has also triggered discussions about a brewing rivalry between the United States and Hong Kong for attracting investments. Alistair Milne, CIO of Altana Digital Currency Fund, captured this sentiment on X, stating, “It is now a fight for capital between Hong Kong and New York to flow into their bitcoin ETFs.”

Read Also: A Forbes Report Says XRP, Bitcoin, and Ethereum Are Close to a Potential 300% Price Rally

According to the report, projections from Matrixport, a Singapore-based crypto services provider, suggest that Hong Kong’s spot ETFs could attract a substantial $25 billion from mainland China. However, there are potential roadblocks.

Reports indicate that mainland Chinese investors might be restricted from participating in these products. This is in contrast to the U.S., where Bitcoin spot ETFs, which the SEC approved in January, have already garnered over $12 billion in net inflows since their inception.

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