The Bitcoin Wave is Coming: ETFs Fueling Mass Adoption, Global Regulators Actively Positioning

The Bitcoin Wave is Coming: ETFs Fueling Mass Adoption, Global Regulators Actively PositioningIntroductionBitcoin, the pioneer of the digital currency space, has sparked a global investment frenzy in recent years. As the digital asset market continues to mature, more and more institutional and individual investors are turning their attention to Bitcoin, the digital gold

The Bitcoin Wave is Coming: ETFs Fueling Mass Adoption, Global Regulators Actively Positioning

Introduction

Bitcoin, the pioneer of the digital currency space, has sparked a global investment frenzy in recent years. As the digital asset market continues to mature, more and more institutional and individual investors are turning their attention to Bitcoin, the digital gold. The advent of Bitcoin ETFs (exchange-traded funds) has injected new vitality into Bitcoin's future development, potentially driving mass adoption and bringing profound impact to the global financial system.

This article delves into the impact of Bitcoin ETFs on the market, as well as the latest moves by governments and regulators around the world in the digital asset space. From Hong Kong's bank account opening policies to the US SEC's approval of Ethereum ETFs, from Canada's crypto market regulation to Zimbabwe's digital asset framework, we will comprehensively analyze this rapidly developing industry and look ahead to its future trends.

Bitcoin ETFs: Opening a New Era of Institutional Investment

The emergence of Bitcoin ETFs provides institutional investors with a convenient, safe, and transparent investment channel, and is expected to accelerate Bitcoin's adoption worldwide. Bitcoin research analyst Tuur Demeester predicts that Bitcoin will see mass adoption due to ETF approvals. He believes this will provide convenient access to Bitcoin for the global banked population and could enable institutions to include Bitcoin on their balance sheets.

Demeester emphasizes that Bitcoin's prominence in the global market, particularly in the US financial system, with its well-organized financial products and deep liquidity, makes it a global focus. He expects Bitcoin to continue to attract adoption by public companies, driving its widespread adoption globally. While he remains cautious about the short-term impact of global liquidity, he is confident in Bitcoin's long-term prospects.

Bitcoin Surpasses Ronin to Become the Third Largest Blockchain for NFT Sales

Beyond its performance in traditional financial markets, Bitcoin also demonstrates strong vitality in the digital asset space. According to the latest data from cryptoslam, Bitcoin has surpassed Ronin to become the third largest blockchain for NFT sales. This phenomenon indicates that Bitcoin's application scope is expanding, with its value extending beyond currency transactions to digital art, games, and other fields.

Long-Term Holders Gradually Selling: Is Bitcoin Entering a Consolidation Phase?

Despite Bitcoin's strong recent market performance, some analysts believe that the Bitcoin market may be entering a consolidation phase characterized by gradual selling from long-term holders. Bitfinex analysts say that long-term Bitcoin holders and large investors seem to be behind the recent Bitcoin selling, both on exchanges and through over-the-counter transactions.

Historically, long-term holders typically gradually sell their Bitcoin holdings during bull markets, especially when the market enters a consolidation phaseas we are seeing now. Analysts highlight the Bitfinex Hodler Net Position Change indicator, which shows that large holder positions have been negative for the past nine days. Bitfinex analysts add that as large holder net position changes, the Bitcoin exchange whale ratio continues to climb as more whales deposit balances on exchanges; these two entities own more Bitcoin than exchange-traded funds, clearly putting pressure on the market.

Ethereum ETFs: Regulatory Approvals Accelerating, Market Awaits With Bated Breath

In addition to Bitcoin ETFs, Ethereum ETFs are also attracting market attention. Bloomberg ETF analyst James Seyffart said, Bitwise has filed a revised S-1 for its Ethereum spot ETF with the US Securities and Exchange Commission (SEC), which will include changes following the SEC's first round of request for comments. It is unclear if more rounds of requests for comments will be needed. The product fee is not yet disclosed. Based on this filing, it is not possible to tell when these products will be launched. It may not require any additional updates, or it may need adjustments. However, it is still subject to the SEC's final approval, the timing of which depends primarily on the SEC. Eric Balchunas (another Bloomberg ETF analyst) and I believe that the Ethereum spot ETF should be launched before July 4th. It appears that Pantera will invest $100 million in the Bitwise Ethereum ETF (ETHW). Panterra is an investor in Bitwise (I believe) and invested $200 million in its Bitcoin ETF (BITB) (Panterra didn't file a 13F, saying it still holds BITB).

Dual ETFs, Hashdex Doubles Down

According to Bloomberg ETF analyst James Seyffart, Hashdex just filed for an Ethereum and Bitcoin dual ETF, which will be market capitalization weighted. The final deadline for approval by the US Securities and Exchange Commission (SEC) should be around the first week of March 2025. James Seyffart added, Hashdex already has a crypto index ETF trading in Brazil currently holding 90% of its assets in Bitcoin and Ethereum, which trades under the ticker HASH11 in Brazil. It makes perfect sense to bring something like that to the US.

Ethereum 2.0 Investigation Ends: SEC No Longer Accusing ETH Sales as Securities Transactions

Consensys stated, In a major win for Ethereum developers, technology providers, and industry participants, the US Securities and Exchange Commission (SEC) Enforcement Division has notified us that it will be closing its investigation into Ethereum 2.0. This means the SEC will not be alleging that Ethereum's sales are a securities transaction.

This news is significant for Ethereum's development, as it means that Ethereum has gained greater certainty on the regulatory front, further propelling the development of its ecosystem.

Hong Kong: Embracing Digital Assets, Building a Global Leading Virtual Asset Center

Hong Kong, as a global financial center, has actively embraced digital assets in recent years and has implemented a series of policies to promote the healthy development of the virtual asset market.

Easing Bank Account Opening Policies to Aid Virtual Asset Businesses

OSL Group CFO Hu Zhenbang said in a recent interview that Hong Kong has many advantages in developing the virtual asset market, including low tax rates, clear legal systems, and robust investor protection. Hong Kong banks are all open-minded, and many Chinese banks welcome these institutions specializing in virtual asset investment to open accounts. In addition, there is no capital gains tax on investing in virtual assets in Hong Kong, which is attractive to global investors.

Launching a Licensing System for Cryptocurrency "Money Changers" to Regulate Market Development

According to Ta Kung Pao, OSL Group CFO Hu Zhenbang revealed in a recent interview that Hong Kong may launch a licensing system for cryptocurrency "money changers" in the near future. In addition, the SAR government is introducing various regulatory measures, involving anti-money laundering and hacker prevention, taking the initiative to promote market regulation, actively exploring solutions for policy development, making Hong Kong's advantages in developing the virtual asset market increasingly evident.

Hu Zhenbang said that after the licensing system takes effect, even the account opening process, including identity verification, will be strictly regulated. In addition, the SAR government has been very enthusiastic about developing virtual assets in recent years, with new policies promoting market development almost every quarter. The characteristics of Hong Kong's virtual asset licenses also expand the advantages of the entire market.

Establishing a Virtual Asset Regulatory Committee to Coordinate Regulatory Efforts

In his article "Challenges and Prospects for Virtual Asset Platform Licensing in Hong Kong," Chen Zhihua, Chairman of the Hong Kong Securities and Futures Professionals Association, points out that mainland laws strictly prohibit foreign institutions from providing virtual currency trading and services to mainland China. If the Hong Kong Securities and Futures Commission requires virtual asset platforms applying for licenses to have their actual controllers or parent companies not violate mainland laws, it is tantamount to requiring the Hong Kong entity to be completely separated from its parent company.

To address multi-headed regulation, the SAR government should consider establishing a unified virtual asset regulatory committee to coordinate regulatory efforts across different institutions, ensuring regulatory consistency and effectiveness, so as to maintain its competitiveness in the global virtual asset market. Recommendations include the following four directions:

1. Improve the regulatory system.

2. The SAR government must consult with relevant departments in mainland China to seek cooperation and coordination in virtual asset regulation.

3. Strengthen cross-departmental collaboration.

4. Simplify and accelerate the licensing process, establish clear approval timelines, and provide applicants with transparent expectations.

Futu Securities Actively Deploys: Providing Virtual Asset Trading Services

Futu Securities said that it is continuously strengthening its virtual asset-related investment and actively promoting virtual asset trading services. During the preparation for service launch, Futu is continuously strengthening virtual asset-related education to help investors gain relevant knowledge in advance and make better investment decisions when services are launched.

Previously, Tiger Brokers had already announced the launch of virtual asset trading services for all retail investors in Hong Kong. As Hong Kong promotes the development of the virtual asset market, more and more large securities firms are participating and planning to get a piece of the pie. Xie Zhijian, Managing Director of Futu Securities, said that according to Futu's latest relevant surveys, over 40% of investors who have never traded virtual assets said they would like to trade on Futu Niu Niu, and nearly 75.6% of experienced investors are also happy to see Futu launch virtual asset trading services on the platform.

United States: Crypto Strategy Triggers Party Dispute, Trump Pledges "Creating Opportunities for Young People"

On the political stage of the US presidential election, cryptocurrencies are also a focal point of contention. Republican presidential candidate Donald Trump pledged at a rally in Racine, Wisconsin on June 18 to "end Joe Biden's war