A popular crypto analyst believes that the recent approval of retail crypto trading by Hong Kong authorities is a positive development for the digital asset industry. The analyst is examining the potentially far-reaching effects of this decision.
Nicholas Merten, the popular host of DataDash, has shared a video update with his extensive YouTube following of 511,000 subscribers, expressing his enthusiasm for Hong Kong’s recent crypto development.
“Okay, so the vast majority of participants now can start to re-participate in crypto – definitely really good news.“
However, Merten says that Hong Kong’s retail crypto trading is probably not enough to trigger a crypto bull market cycle.
“If we were to assume that Hong Kong now due to this retail investor, you know, kind of path to investing is opening up and we take even a very optimistic scenario – this is an optimistic one at best – what if 1% of [Hong Kong’s] GDP was invested in cryptocurrencies. That would be $3.8 billion of investment inflows into the space. And again positive thing for crypto. That would be really good.”
US crypto news
According to Bank of America (BofA), money market funds experienced an influx of over $500 billion in capital.
Reuters reports that, as a result of the ongoing banking crisis and the Federal Reserve’s rate hikes, money market funds have received $756 billion in investments this year, according to a recent BofA investor note.
A money market fund is a mutual fund that aims to generate income by investing in short-term debt of high quality, which includes those provided by the US government. This year, the yields of money market funds have surged significantly as a result of the sharp increase in interest rates.
The financial giant reports that money market funds are receiving a significant amount of capital, reaching a level similar to the panic-driven redirection of $917 billion into cash funds during the Covid-19 pandemic three years ago.
