In anticipation of Hong Kong's potential approval of the first spot Bitcoin exchange-traded funds (ETFs), mega whales holding over 10,000 BTC are reportedly accumulating, setting the stage for a significant market shift.

The Securities Regulatory Commission of Hong Kong (SFC) is poised to greenlight the inaugural batch of spot Bitcoin ETFs by April 15, just days ahead of Bitcoin's halving event, which is slated to reduce the supply issuance rate of BTC.

Rumors suggest that the Hong Kong regulator has expedited the approval process for four spot Bitcoin ETFs, a move that could fuel increased buying demand for Bitcoin. If approved, these ETFs would offer both retail and institutional investors in Hong Kong exposure to BTC, potentially triggering a surge in market activity.

Renowned crypto entrepreneur and investor Lark Davis speculates that Hong Kong may approve not only Bitcoin ETFs but also Ether ETFs on April 15, coinciding with the same week as the Bitcoin halving. This convergence of events could mark a pivotal moment for the crypto market, particularly as China prepares to enter the bidding fray.

Once the initial set of spot Bitcoin ETFs receives regulatory approval, it will take approximately two weeks to finalize the listing procedures on the Hong Kong Stock Exchange. This delay notwithstanding, market analysts are already considering the potential impact of ETF approval on Bitcoin's post-halving trajectory.

Herbert Sim, chief operating officer of crypto exchange Websea, believes that the approval of Bitcoin ETFs in Hong Kong could serve as a catalyst for Bitcoin's rally post-halving. Sim argues that institutional demand from Hong Kong-based ETFs, coupled with ongoing inflows from major U.S. ETF issuers like BlackRock, will drive prices higher amid the supply cut resulting from the halving event.

Sim's sentiments are echoed by popular crypto commentator Bitcoin Munger, who notes that mega whales are accumulating Bitcoin in anticipation of the ETF approval and halving. This accumulation, combined with positive market sentiment surrounding ETFs, suggests a potential uptrend in Bitcoin's price.

Historically, ETF inflows have played a significant role in driving Bitcoin's price rally. Research indicates that Bitcoin ETFs accounted for a substantial portion of new investment in the cryptocurrency when it surpassed the $50,000 mark earlier this year.

As speculation mounts regarding the impact of ETF approval on Bitcoin's price action, market observers are closely monitoring developments in Hong Kong, poised to capitalize on potential opportunities arising from this significant market shift.