The cryptocurrency market has entered a new phase of momentum as Bitcoin surpasses $100,000, reigniting investor enthusiasm across global markets. In Hong Kong, crypto-related equities and exchange-traded funds (ETFs) have surged, with Ethereum-based ETFs leading the charge, some climbing over 7%. This rally reflects renewed institutional confidence and growing retail interest in digital assets as both investment vehicles and long-term stores of value.
As Bitcoin stabilizes above the six-figure threshold, investors are asking: What’s driving this surge? Are traditional financial players shifting their stance? And why did a company that exited crypto—like Meitu—still experience strong gains?
Let’s dive into the latest market dynamics, institutional sentiment, and underlying trends shaping the current crypto resurgence.
Bitcoin Reclaims $100K Amid Macroeconomic Shifts
After briefly dipping below $100,000 earlier in December, **Bitcoin reclaimed the milestone** and held steady above the mark, trading at approximately $100,616 at press time—a slight 0.5% dip but still firmly within bullish territory.
This rebound comes amid shifting macroeconomic expectations. Ray Dalio, founder of Bridgewater Associates—the world’s largest hedge fund—recently reaffirmed his stance on “hard assets” in an environment of rising national debt and potential currency devaluation.
“I expect debt monetization to become more prevalent,” Dalio stated. “I want to stay away from debt assets like bonds and instead hold hard currencies—gold and Bitcoin.”
His endorsement underscores a broader trend: institutional investors are increasingly viewing Bitcoin as digital gold, a hedge against inflation and systemic financial risks. With central banks maintaining loose monetary policies and governments piling on debt, assets with fixed supplies are gaining favor.
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Hong Kong Crypto ETFs See Strong Inflows
Hong Kong’s crypto ETF market has responded dynamically to the rally. All major cryptocurrency ETFs listed in the region posted significant gains:
- Boshi Ethereum ETF (03009.HK), CSOP Ethereum ETF (03046.HK), FA Southern Ethereum ETF (03068.HK), and Harvest Ethereum ETF (03179.HK) all rose more than 7%.
Bitcoin-focused funds also performed strongly:
- FA Samsung Bitcoin ETF (03135.HK) and Boshi Bitcoin ETF (03008.HK) gained over 3%.
- Harvest Bitcoin ETF (03439.HK), CSOP Bitcoin ETF (03042.HK), and FA Southern Bitcoin ETF (03066.HK) climbed more than 2%.
These movements reflect not just price correlation with underlying assets but also increased investor appetite for regulated exposure through traditional markets.
According to data compiled by financial analysts, since the U.S. election on November 5, twelve spot crypto ETFs issued by giants like BlackRock and Fidelity Investments have attracted nearly $99 billion in net inflows**, pushing total assets under management to around **$113 billion.
CoinGecko reports that since Donald Trump’s 2024 presidential win, the overall crypto market cap has expanded by approximately $1.2 trillion, signaling a powerful comeback fueled by policy optimism and institutional adoption.
Why Did Meitu Company Surge Despite Exiting Crypto?
One of the most intriguing stories in this rally is Meitu Company (01357.HK), which saw its stock jump 13.25%—outpacing many pure-play crypto firms—even though it had fully exited its cryptocurrency holdings.
So what drove the surge?
AI Breakthroughs Take Center Stage
Meitu’s rally is less about Bitcoin and more about artificial intelligence. On December 10, OpenAI launched public access to Sora, its groundbreaking text-to-video generation model. While not directly linked to Meitu, the event spotlighted the explosive potential of generative AI in creative industries—precisely where Meitu operates.
The company has already rolled out three AI-powered products:
- Meitu Design Room (DesignKit)
- KaiPai (Action)
- MOKI
These tools cater to content creators, marketers, and designers seeking professional-grade visuals without extensive technical skills.
Morgan Stanley estimates that Meitu Design Room alone could generate RMB 200 million (~$28 million) in domestic revenue in 2024—double the previous year—with gross margins between 60% and 70%. Demand is exceeding expectations, signaling strong product-market fit.
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Strategic Capital Reallocation
In a strategic move earlier this year, Meitu liquidated its entire crypto portfolio, realizing proceeds of about RMB 1.3 billion (~$182 million)** and a profit of approximately **RMB 571 million (~$80 million).
Rather than reinvesting in digital assets, the company decided to return roughly 80% of the net proceeds as a special dividend, rewarding shareholders directly. The remainder will fund expansion into subscription-based imaging and design solutions, aligning with its long-term vision of becoming a global leader in creative SaaS.
This capital discipline resonated with investors, reinforcing confidence in management’s strategic clarity—even amid volatile market conditions.
Institutional Adoption: The Quiet Engine Behind the Rally
While retail excitement often drives headlines, the real foundation of this bull run lies in institutional adoption.
Asset managers like BlackRock and Fidelity have normalized crypto exposure through regulated ETFs. Pension funds, family offices, and sovereign wealth entities are beginning exploratory allocations. Even traditional banks are upgrading their digital asset infrastructure.
Key factors fueling institutional interest include:
- Limited supply of Bitcoin (capped at 21 million)
- Increasing regulatory clarity in jurisdictions like Hong Kong and the U.S.
- Integration with existing financial systems via custodial services and clearing networks
- Growing use cases beyond speculation—such as decentralized finance (DeFi) and tokenized assets
As trust in centralized financial systems faces pressure from inflation and fiscal deficits, decentralized alternatives are gaining legitimacy.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin really a “hard currency” like gold?
A: Many investors—including Ray Dalio—view Bitcoin as a modern form of hard currency due to its scarcity, durability, portability, and decentralization. Like gold, it's not tied to any government or central bank, making it resistant to inflation and debasement.
Q: Why are Ethereum ETFs rising faster than Bitcoin ETFs?
A: While Bitcoin leads in store-of-value narratives, Ethereum benefits from its role as a platform for smart contracts, DeFi, NFTs, and AI-driven applications. Recent developer activity and upgrades have boosted sentiment around ETH’s utility value.
Q: Can companies benefit from crypto without holding digital assets?
A: Absolutely. As Meitu shows, firms can capitalize on blockchain-related trends—like AI integration—without direct crypto exposure. Strategic exits can free up capital for innovation while still riding broader sector momentum.
Q: Are crypto ETFs safe for retail investors?
A: Spot crypto ETFs listed on regulated exchanges offer a safer entry point than direct ownership, as they provide custody protection, transparency, and ease of trading through familiar brokerage platforms.
Q: What caused the $1.2 trillion increase in crypto market cap?
A: The surge followed positive macro signals—including Trump’s pro-innovation policy stance, expectations of lighter regulation, and strong ETF inflows—which collectively restored market confidence and attracted new capital.
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Final Thoughts: A Maturing Digital Asset Ecosystem
The current rally isn’t just about price—it reflects a maturing ecosystem where crypto intersects with AI, finance, regulation, and global macro trends. From Hong Kong’s growing ETF market to strategic corporate pivots like Meitu’s, the landscape is evolving rapidly.
For investors, the message is clear: digital assets are no longer fringe experiments but core components of a diversified portfolio. Whether through direct holdings or regulated funds, participation is becoming more accessible—and more necessary—than ever.
As Bitcoin holds above $100,000 and Ethereum gains momentum, one thing stands out: this isn’t just another speculative wave. It’s the beginning of a structural shift in how value is stored, transferred, and created in the digital age.
Core Keywords: Bitcoin, Ethereum, crypto ETFs, Hong Kong stocks, institutional adoption, generative AI, digital assets, Meitu Company