Hong Kong Web3 Festival wraps up with Bitcoin boom and ETF hopes

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Hong Kong’s recent Web3 Festival buzzed with enthusiasm as industry leaders and enthusiasts gathered to discuss the future of cryptocurrencies, particularly bitcoin. The festival concluded with a sense of anticipation, fueled by the potential approval of spot exchange-traded funds (ETFs) for bitcoin in the city, expected this month.

The soaring price of bitcoin, up 58% to about US$69,000 this year, has set an optimistic tone among attendees. One of the main reasons for this optimism is the development of layer-2 bitcoin projects, which aim to enhance the scalability of the main blockchain, making transactions faster and more efficient. Many in the industry see this as a catalyst for increased demand for bitcoin-based businesses.

Spot ETFs, however, are the talk of the town, offering investors an easy way to invest in bitcoin without the complexities of managing keys and storage. The Hong Kong Securities and Futures Commission (SFC) is expected to approve spot bitcoin ETFs this month, following similar approvals in the US in January.

The introduction of spot bitcoin ETFs in Hong Kong is seen as a monumental step, not just for the local market but for the global acceptance of digital assets. It could pave the way for wider adoption of cryptocurrencies as legitimate alternative assets.

While much of the focus is on bitcoin, there is also talk about the potential approval of spot ETFs for ether, the native token of the Ethereum blockchain. This move, if approved, would position Hong Kong as a pioneer in the space, although some experts believe it could face regulatory challenges.

Overall, the mood at the Web3 Festival was one of excitement and optimism, with industry leaders and enthusiasts looking forward to a future where cryptocurrencies play a more significant role in the global economy.

(Source: SCMP | PR Newswire | MSN)

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