Analysts say VeChain and Neo are rallying as proxy bets on Hong Kong ETF approval.
Analysts say that the following China-linked tokens exist: VeChain 
veterinarian
-10.70%
And Neo has been acting as a proxy bet for Hong Kong’s bid to become Asia’s cryptocurrency hub.
Amid speculation that Hong Kong regulators will soon approve spot Bitcoin and Ethereum exchange-traded funds (ETFs), both tokens posted double-digit weekly gains. VeChain is up more than 21% in the past week, while Neo is up more than 53%, according to The Block’s pricing page.
“Especially in retail and fast finance, VeChain and Neo are seen as proxies for Asian demand. Neo, for example, is colloquially known as the ‘Ethereum of China,’” analysts at Wintermute told The Block.
Hong Kong as an Asian cryptocurrency hub
Analysts said Hong Kong’s efforts to establish itself as the East’s cryptocurrency hub may have contributed to Neo’s outperformance and notable flows to VeChain and Conflux. “The token basket will be on many fast money radars around June 2023 as Hong Kong opens up retail cryptocurrency licensing, with many trading it as a proxy for APAC flows,” Wintermute analysts added.
The rise of each token comes from the news. Hong Kong regulators could reportedly approve spot ETFs based on Bitcoin and Ethereum as early as Monday.
Bloomberg News, citing sources familiar with the matter, said a subsidiary of Chinese asset manager Harvest Fund Management Company is expected to win approval to operate as an issuer of Bitcoin and Ethereum funds. Additionally, a partnership between Bosera Asset Management (International) Co. and HashKey Capital is also expected. It has been approved to offer both types of cash exchange-traded funds (ETFs) in Hong Kong.
Hong Kong Spot Bitcoin ETF Approved Expected
Anticipation of the possible approval of spot Bitcoin and Ethereum ETFs in Hong Kong signals progress in the cryptocurrency economy, according to a Coinbase report on Friday.
“Outside the US outlook is now playing a meaningful role in Bitcoin’s overall price discovery,” Coinbase analysts said.
The weekly report added that the majority of recent Bitcoin net buying occurred outside of US trading days. “The potential approval of a spot Bitcoin ETF in Hong Kong next week could further highlight this trend and give Bitcoin access to a much broader pool of capital,” the report said.
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