Category: Bitcoin ETF

Categories
Bitcoin Bitcoin ETF

Bitcoin Spot ETFs to Hit Hong Kong Market on April 30, Expert Warns of Imminent Rate War

In a significant development for the Bitcoin (BTC) market, Hong Kong will witness the start of trading of several spot Bitcoin ETFs on April 30.

This milestone follows the successful approval and subsequent commercialization of Bitcoin ETFs in the United States earlier this year under the regulatory oversight of the Securities and Exchange Commission (SEC).

With institutional adoption on the rise and Bitcoin reaching its all-time high of $73,700 in March, the upcoming launch of these ETFs in Hong Kong holds great promise for the cryptocurrency market.

Rate battle looms

The Hong Kong Securities and Futures Commission (SFC) made a notable announcement on April 15, approving the trading of several Bitcoin and Ethereum spot ETFs. This regulatory approval paved the way for Bitcoin ETF trading in Hong Kong.

Industry experts Eric Balchunas and James Seyffart of Bloomberg anticipate a rate war will ensue as ETF issuers strive to attract the largest number of customers.

Balchunas and Seyffart predict possible rate war in Hong Kong as Bitcoin ETFs prepare to launch. The Harvest Fund, for example, plans to enter the market with full fee waivers and the lowest rate of 0.3% after the waiver period.

Revised Bitcoin ETF Projections

The competitive fee structures of these Bitcoin ETFs are expected to generate greater interest among investors, which could attract greater assets under management.

Balchunas acknowledges the relatively low rate levels and describes them as a positive sign for the market. Lower fees are likely to increase the attractiveness of these index funds and increase their assets under management (AuM).

While optimism surrounds the launch of Bitcoin ETFs in Hong Kong, Eric Balchunas offers a cautious analysis of potential capital inflows into this new market.

Blachunas suggests that these ETFs could lag behind their US counterparts, which have already achieved trading volumes of more than $200 billion since their launch in January.

Balchunas revised his initial forecast, estimating that these Hong Kong ETFs could attract up to $1 billion in assets under management in the first two years of operation, doubling his previous projection of $500 million.

Categories
Bitcoin Bitcoin ETF

Bitcoin spot ETFs to receive green light in Hong Kong in April

According to a recent Reuters report, Hong Kong will become the first city in Asia to launch Bitcoin spot ETFs. Notably, initial approvals for these ETFs are expected to be announced next week, significantly exceeding industry expectations for these types of launches this year.

The revival proposed by Hong Kong

According to the report, the decision to introduce spot Bitcoin ETFs comes as Hong Kong seeks to revive its status as a preeminent financial center, in which pandemic-related restrictions have been somewhat eased, China’s economic slowdown and tensions between China and the United States.

By adopting cryptocurrency investment vehicles, Hong Kong aims to attract new global investments and take cryptocurrency adoption to new heights.

Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto asset manager, emphasized the importance of introducing Bitcoin ETFs in Hong Kong, noting the potential for greater global investment and broader adoption of cryptocurrencies.

This move follows the success of the United States, which launched the first US-listed spot Bitcoin ETFs in January and attracted approximately $12 billion in net inflows, as Bitcoinist previously reported.

While the Hong Kong Securities and Futures Commission (SFC) and the three Chinese firms declined to comment, the Hong Kong units of China Asset Management and Harvest Fund Management recently obtained approval from the SFC to manage portfolios with investments greater than 10% in virtual markets. asset.

These parent companies are major mutual fund companies in China, each managing more than 1 billion yuan ($138 billion) in assets.

Bitcoin Futures Success Fuels Interest in Spot Bitcoin ETFs

Cryptocurrency trading is prohibited in mainland China. However, Chinese offshore financial institutions have shown great interest in participating in the development of crypto assets in Hong Kong.

The city had already approved ETFs for cryptocurrency futures in late 2022, with the CSOP Bitcoin Futures ETF being the largest. It has accumulated around $120 million in assets under management, up sevenfold since September 2023.

In addition to the aforementioned asset managers, Hong Kong-based Value Partners has expressed its exploration of launching a spot Bitcoin ETF, although it has not revealed whether an official application has been filed.

Additionally, at least four asset managers from mainland China and Hong Kong, including China Asset Management, Harvest Fund Management and Bosera Asset Management, have filed applications to launch Bitcoin spot ETFs.

As the regulatory landscape evolves, the introduction of spot Bitcoin ETFs in Hong Kong is expected to pave the way for greater investment opportunities and contribute to the growth and maturation of the global cryptocurrency market.

At the time of writing, the market-leading cryptocurrency has witnessed significant price volatility. It approached its all-time high on Monday and hit a high of $72,600. However, it encountered upper level resistance, falling towards the $67,600 range. This represents a 3.5% reduction in the last 24 hours alone.

Categories
Bitcoin Bitcoin ETF

US Bitcoin ETFs Bounce Back With $569.4M in Net Inflows After Initial Dip

Spot bitcoin exchange-traded funds (ETFs) concluded the week on an upbeat note, securing $203 million in positive inflows on Friday, as per the latest data. Despite an initial setback of $84.7 million in net outflows on April 1, the ETFs have since rebounded, gathering $569.4 million in net inflows.

Categories
Bitcoin ETF Cryptocurrency news Ripple Tether

USTC surges 15% amid recovery following LUNC’s BTC surge

Terra Luna Classic (LUNC) and Terra Classic USD (USTC) have recently experienced major price fluctuations. After an impressive rally, both tokens suffered a pullback, attracting the attention of investors and market analysts. However, LUNC and USTC have nullified the bearish trend, with prices up 18% and 15% at the time of publication.

LUNC Roller Coaster Week

LUNC, the revamped version of the original Terra Luna, posted a notable 26% gain last week. This surge peaked on November 27, when the token reached $0.000128 before the momentum faltered and the price fell to $0.000095. Furthermore, despite this decline, LUNC has seen a substantial increase of 27.70% in the last seven days and an even more impressive increase of 49.23% in the last month.

USTC Soars After LUNC Recovery

Similarly, USTC, the dollar-pegged stablecoin that remained unpegged after the 2022 crisis, made headlines with a surge of over 200%. Although it reached a high of $0.078, the price adjusted to an intraday low of $0.03147 before establishing solid support. Despite this, USTC has recovered, up 205.53% last week and up 233.95% for the month. Furthermore, at press time, USTC had reversed downward pressure, rising 15.90% to $0.046125, according to CoinStats.

USTC Price Chart

One of the main drivers of these price movements is the recent strategic acquisition of USTC by Terra Classic Labs, which has also positively influenced the value of LUNC. However, despite the recent negative trend, a decline of over 20%, USTC has gained bullish momentum over the past day. This resurgence is attributed to LUNC’s bullish recovery after Bitcoin (BTC) surpassed $38,000.

Despite these fluctuations, the tokens have attracted significant attention in the crypto community. Santiment analysts suggest that the initial price rises of LUNC and USTC may have been driven by fear of missing out (FOMO) among investors.

Categories
Bitcoin Bitcoin ETF Cryptocurrency news

Solana Remains Favorite of Institutional Investors as Inflows Continue

Solana has recently gained favor with institutional investors, who have seen a sharp increase in the number of inflows the altcoin has recorded. This trend has continued with last week’s numbers showing a significant number of inflows for Solana compared to the likes of Ethereum.

Solana revenues reach $15.5 million

According to data from the latest CoinShares report, flows to Solana last week totaled $15.5 million. This occurred as some altcoins like Ethereum saw outflows during the week. For context, Ethereum outflows reached $7.4 million in the same period.

As a result of the latest round of inflows, Solana’s total assets under management (AuM) reached $74 million. This means that Solana’s AuM is up 47% year-to-date compared to Ethereum, which has fallen steadily this year, rising to $119 million in outflows so far this year.

Cardano is another altcoin that registered inflows during the week, but to a lesser extent. Its inflows were $0.1 million, bringing total assets under management to $24 million, an increase of $6 million so far this year. Other investment products registered $0.9 million, bringing its assets under management to $76 million.

In the same week, Bitcoin once again came out ahead in terms of inflows, with numbers surpassing those of Solana. The leading cryptocurrency recorded inflows of US$55.3 million, bringing its assets under management to US$24.205 billion. The asset’s inflows so far this month currently stand at a staggering $111.9 million.

In the same vein, Bitcoin inflows so far this year have also remained high, with inflows of $315 million so far. This further consolidated its position as the top asset with the most interest from institutional investors so far.

Short positions in Bitcoin were also not left out of the entry trend. Its weekly revenues total $1.6 million, while monthly revenues to date have totaled $4.5 million. Its inflows so far this year amount to $46 million, bringing its assets under management to $99 million. In total, the accumulated wealth from crypto investment products is nearly $33 billion.

“Following recent price appreciation, total assets under management (AuM) has increased 15% from its lows in early September, now totaling almost US$33 billion, the highest point since mid-August,” says the CoinShares report.

CoinShares also notes that the inflows may be related to excitement and anticipation of the US Securities and Exchange Commission (SEC) approving a Bitcoin spot ETF. However, the numbers are much lower compared to when asset manager BlackRock first announced it had filed for a Spot Bitcoin ETF.