Cryptocurrency-linked exchange-traded funds listed in Hong Kong posted sharp gains on Tuesday, tracking a broad rally in digital assets after dovish comments from a Federal Reserve official dampened expectations for further interest rate hikes.
The Southern 2x Long MSTR (07799) climbed 25.55% to HK$4.216, while the Southern 2x Long Coinbase (07711) advanced 14.5% to HK$27.96 at the time of writing.
Fed Governor Christopher Waller signalled he would be comfortable holding rates steady if inflation continues to moderate, a stance that helped ease market concerns about tighter monetary policy. That triggered a decline in US Treasury yields and sparked a broad rally across cryptocurrencies, with Bitcoin briefly breaking through the $81,000 level.
On Wall Street overnight, crypto-related equities also surged, with Strategy (MSTR) jumping more than 17% and Coinbase Global, Inc. gaining over 10%.
Notably, last week Strategy resumed its Bitcoin purchases after a 10-week pause, returning to its signature treasury accumulation strategy. The company had previously come under pressure during the crypto bear market, which weighed on its share price, undermined confidence in its financing model, and prompted a restructuring of its balance sheet.
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